The 43-year-old, from the western NSW town of Trangie, died when his fixed-wing aircraft crashed in rugged terrain near Ulladulla.
According to news reports, Mr Black had three young children and owned Rebel Agricultural, the company which had been contracted to help the RFS with water bombing activities.
The famiy of the man has been notified by police, along with colleagues at his work.
"We've suffered a huge tragedy on one of our fire grounds today,'' RFS Commissioner Shane Fitzsimmons said.
“It's a tragedy for the fire fighting community but first and foremost it's a tragedy for this man's family. "He's a husband with young children and we're all acutely aware that there's a family suffering today because their dad didn't come home.''
Superintendent Joe Cassart, the Shoalhaven local area commander, told a press conference at the Nowra police station that the crash had caused "significant damage to the aircraft'', which was fighting fires in the Wirritin Mountains at the time of the accident.
"This sort of collision resulted in significant damage to the aircraft but we haven't been given specifics,'' Supt Cassar said.
Meanwhile , the massive State Mine Fire that has destroyed three homes and burned through nearly 50,000 hectares of land west of Sydney.
The bushfire continued to rage at emergency level between Lithgow and the Blue Mountains on Thursday, more than a week after it was sparked during explosives training on army land.
Australia’s Acting Defence Chief, Air Marshall Mark Binskin, has apologised for the fire, which was started during defence training activities.
He said a small fire that started during a routine training exercise at Marrangaroo on October 16 was responsible for the blaze.
“I do apologise, because it has been identified that this fire was the start of this mine fire," he told reporters at RFS headquarters in Sydney on Thursday.
"We'll ascertain the facts as part of our own inquiry but what I do know to date is it was an explosives activity, it was a demolition activity in support of our people that train for operations around the world."
Air Marshall Binskin, said the decision to go ahead with the training exercise was made on a day of light winds and 23 degree-temperatures and a NSW Police investigation was underway.
"The fire (danger) was on the lower end of the scale and there was not a fire ban," he said. He said Defence personnel acted quickly after an explosion started a small fire after midday on October 16 but were hampered by the live ordnance around them, with RFS crews arriving within half an hour.
"It was considered too dangerous to go onto the particular site where the fire had started to burn, so they waited till it cleared that area and then started to fight it," he told reporters.
"This was not deliberately starting a fire, this was an accident as part of a training activity on a day there wasn't a fire ban."
He said Defence was "not shying from our responsibilities" but made no mention of the possibility of compensation being offering to those affected.
Air Marshall Binskin said the force's in-house investigation into this incident could prompt changes to training procedures around Australia.
Meanwhile, Denmark’s Australian-born royal, Princess Mary, in Sydney to mark the Opera House’s 40th birthday, extended sympathy to those affected by the bushfires during a public appearance.
"We've been watching the situation closely from Denmark over past eight days," she told reporters and a group of about 100 people who had gathered to see her on the front steps of the Opera House on Thursday.
"Our deepest sympathies go to those affected and our outmost respect to the work that's been done by professionals and volunteers alike in trying to control these fires that are really scary."
She described the work of fire fighters working to control blazes in the state as amazing. "It's always heartbreaking seeing people losing possessions and homes," she said.
