The owners of a waste management company in Melbourne are under investigation over a massive rubbish fire that continues to burn in the northern suburbs.

Residents have been warned to stay away from the potentially toxic blaze which caused the Hume Highway to be shut in both directions.

It is believed lightning sparked the fire at the rubbish pile behind a factory in Somerton at about 2.30am today.

Around 150 firefighters and aerial bombing crews are battling the blaze which continues to burn this evening.

As fire crews battled the blaze throughout today, fears of toxic smoke and asbestos grew.

Residents in surrounding suburbs are still advised to stay indoors, close windows and shut off air conditioning.

The specialist recycling plant next door has been spared, however workers are furious.

The stockpile is attached to a business named Ecotec Woodwaste, which made money from operating as a private dumping ground.

The former owner has recently been prosecuted for failing to comply with planning permits and council orders to clean up the site.

On Monday a court fined him $59,000 plus costs, while another employee will front a magistrate next week.

Spot fires have flared on the site before, with CFA officers deeming it an ongoing risk.

Firefighters are expected to battle this enormous blaze for days and will remain on scene to ensure it does not spread.

Both lanes of the Hume Highway near Goulburn were closed on Friday afternoon as firefighters worked to extinguish a grass fire that is now under control.

While motorists could travel south to Canberra, all northbound highway traffic was being diverted through Goulburn. The highway was reopened by authorities about 6.30pm.

More than six fire crews were called to contain the fire close to the south Goulburn McDonald’s restaurant, which began on the median strip after a car lost its wheel around 1.30pm Friday.

Hot winds propelled the blaze to jump to the other side of the highway.The fire was moving rapidly eastbound, advancing towards several properties.

Residents have said they understood the fire started when a trailer travelling on the Hume Hwy became unhinged and spilled its load on the median strip.

Some residents also hosed down their properties to prevent the fire from catching.

The fire is understood to have knocked out power in some areas around the blaze.

Traffic was being diverted through Goulburn and motorists have been asked to avoid the area. Main roads through the town were congested for several hours as the Hume Highway remained closed.

The NSW Rural Fire Service elevated the alert level to watch and act, before dropping it to alert around 4.45pm. The fire is believed the fire has burnt out five hectares.

South Hill property owner Roland Gumbert said there were fires to the left and right of his place on Garrorigang Road but as far as he could see, the blaze was under control.

“We don’t have any damage to our place, except for perhaps fences,” he told the Goulburn Post.

“I can see some stumps burning [not on his property] but all our buildings and equipment are fine.”

NSW Southern Tableands RFS zone manager Ian Kennerley said 70 personnel and 20 appliances were onsite and that the fire had jumped the highway and moved over to South Hill. It was heading towards the river and the railway line.

Mr Kennerley was confident crews were getting on top of the fire and was hoping for a drop in the wind.

NSW Fire and Rescue were waterbombing South Hill near the homestead where several tankers were onsite to battle the flames. They were also waterbombing the northern side of the highway as trees were alight.

Earlier on Friday, the Emergency Services Agency warned Canberrans to prepare for a high fire risk amid potentially damaging winds.

Twelve people have been taken to hospital after a bus rolled onto its side near Goulburn this morning.

The crash happened shortly after 10am (Saturday 21 November 2015), on Sandy Point Road at Windellama, about 50km south east of Goulburn.

A bus, carrying staff and students from the Australian Defence Force Academy, rolled onto its side with several passengers seriously injured.

Police from The Hume Local Area Command, Fire & Rescue NSW, and Rural Fire Service (RFA) attended the scene as well as two helicopters and multiple ambulances.

Two injured passengers were airlifted to Canberra Hospital, one passenger was airlifted to Liverpool Hospital, nine passengers have been taken by road to hospital.

The bus driver has been taken to hospital for mandatory blood and urine tests.

Officers from Traffic and Highway Patrol’s Crash Investigation Unit are examining the scene. Inquiries are continuing.

Emergency services have responded to a fatal skydiving accident in Goulburn this afternoon.

Just before 1.50pm (Saturday 21 November 2015), emergency services were called to Goulburn Airport, Windellama Road, following reports of two injured skydivers.

Initial inquiries have led police to believe the pair was tandem skydiving, when about 20m from ground, they fell to the ground.

A man died at the scene. He is yet to be formally identified.

A 14-year-old boy was assisted at the scene by Ambulance Paramedics, before being airlifted to Royal Randwick Hospital in a critical condition.

Investigations into the incident continue.