More than 60 people escaped a fire that took hold of a backpackers hostel and nearby pub in Bundaberg in central Queensland.
The Federal Backpackers and Spotted Dog Tavern were evacuated about 11pm on Monday and several roads were closed around Bourbong Street, Bundaberg Central.
"Thankfully, all residences have been accounted for and there are no injuries reported," Queensland police said in a statement.
Paramedics provided welfare checks but no one was hospitalised.
The fire has been contained, but several roads will remain closed due to the extent of the damage and concerns the building could collapse.
"I do want to thank all of the fire crews that attended that scene," Premier Annastacia Palaszczuk said on Tuesday.
"Once again, tremendous work that everyone was evacuated on time."
Flames completely gutted the top floor of the Federal Backpackers and pieces of the roof were hanging off on different levels.
People are being asked to avoid the Bundaberg Central area bound by the Burnett River, Maryborough Street, Woongarra Street and Burrum Street.
Residents within that zone are urged to follow the advice of emergency services on the ground.
Bundaberg Mayor Jack Dempsey said the backpackers who had been living at the site have been safely relocated into new accommodation.
"My thoughts are with the migrant workers and business owners who have been affected by this terrible event," Cr Dempsey said.
"I would like to thank all emergency services and council staff involved for their great work."
Queensland Fire and Rescue Service Area Commander John Battas told The Courier-Mail it appeared the fire started in the roof.
The heat was so intense, firefighters were pushed as they brought it under control.