Queensland assesses cyclone damage

Cyclone Ului unroofed homes, washed boats ashore and cut power to 60,000 properties in Queensland's Whitsunday region.

But the premier says the region was spared the worst from the storm, which had 200km/h winds when it crossed the coast early on Sunday.

It's since been downgraded to a rain depression.

"We are characterising it as a significant event with severe damage in some pockets, but not a catastrophic event," Anna Bligh told the Seven Network hours after Ului hit on Sunday.

She said the damage assessment had only just begun and it was clear some residents had been hit hard.

"We know already that there are reports of a number of houses completely unroofed," she said, adding that with winds still high, help would be some time away for those families.

Ms Bligh said the focus now was on the flood risk from heavy rain associated with the weather system.

"There is still a lot of rain in this system and we are watching very carefully to see if that now turns into a flooding event. We're certainly not out of the woods yet."

Ului crossed the coast as a category three system with winds of 200km/h near Airlie Beach at 1.30am (AEST) on Sunday. It weakened as it moved inland and is now a rain depression.

The Bureau of Meteorology is warning of heavy rainfall and flooding in coastal and inland areas between Bowen and St Lawrence.

Proserpine, inland from Airlie Beach, appears to be among the worst hit.

Whitsundays mayor Mike Brunker says six homes have been damaged. One is missing its entire roof.

Another house has served as a landing pad for the roof of a shed torn from a neighbour's property.

Streets throughout the town are criss-crossed with fallen powerlines, and cane crops between Proserpine and Airlie Beach are flattened, the paddocks flooded with water.

One resident who lives near Proserpine said it was a wild ride when Ului hit.

"Pretty wild, mate. I live in a pretty rickety old house and she was jumping up and down on the stumps a bit. I've got an avocado tree through my dog kennel," the caller told ABC Radio.

One of the biggest tasks in Airlie Beach will be salvaging about a dozen vessels washed onto the rocks.

They include the 26-metre Anaconda II, a former racing maxi that has sailed round the world and competed in the Sydney to Hobart race. It's now used to take backpackers on sailing trips.

The town itself has survived relatively unscathed, with no obvious damage other than many trees down, the power cut and shade sails ripped apart.

Ergon Energy says about 60,000 customers are without power in the region, and generators are being sent to affected communities to ensure emergency and other services can keep working.

"We won't be putting crews back on the road until the weather improves and it's safer for them to get out and do some work," an Ergon spokesman said.

The Department of Community Safety says its getting emergency crews to people who need help as quickly as possible.

"To date, the jobs reported are for minor structural damage consisting of damaged roofs and windows which has caused some water inundation into homes," the department said.

"Trees have also come down on homes and roads."

The premier, Emergency Services Minister Neil Roberts and acting chief officer of Emergency Management Queensland, Bruce Grady, have held a phone hook-up with affected communities.

- AAP