Gillard flew to Bundaberg, which has been cut in two by the post-cyclone inundation, before moving on to Rockhampton, a major regional centre where 4,000 residences are under threat.

Vast swathes of the northeastern farming and coal-mining belt near Brisbane are already submerged as waters continue to rise, with flood peaks expected in the coming days.

Officials have voiced concerns over disease outbreaks and food shortages in 22 towns inundated or isolated by the floods -- in some places the worst on record -- which have also paralysed coal production at several mines.

Gillard was greeted by good news in Bundaberg, where scores of residents are sheltering in evacuation centres, after the nearby river peaked and waters slowly started to recede.

"It's good news that it's going down quicker than anticipated," she said, before heading into a meeting with emergency services.

The prime minister was also expected to visit Emerald, population 11,000, where the muddy tide could deluge some 80 percent of the town. About 1,200 residents have already evacuated, officials said.

Queensland premier Anna Bligh, who has called it the huge state's "toughest hour", said the floods and severed transport links had affected 200,000 people across an area the size of France and Germany combined.

Some areas may remain flooded for another 10 days, with relief and clean-up operations expected to last weeks. Bligh said the disaster's cost may amount to several billion dollars (several billion US).

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