Tropical Cyclone Gretel may not make landfall but is still having an impact with damaging wind warnings of around 100 km/h for coastal regions across southeast Queensland and northern NSW.
Bureau of Meteorology forecaster Matt Bass said Gretel formed at 5am on Sunday and will develop into a category two system before transitioning into a tropical low over the Pacific Ocean.
It will pass to the north of Norfolk Island with local residents warned of winds in excess of 125km/h on Monday.
The cyclone's reach will be felt along coastal regions with gusts topping 90km/h along the Border Ranges, Moreton Island and North Stradbroke Island, he said.
"In the early hours of Tuesday morning it will transition into a tropical low but the winds will be as strong as a category two cyclone," Mr Bass said.
"The peak in the winds is tonight, around the coastal strip south of Fraser Island and along the border ranges along the NSW border.
"It will be pretty breezy more generally along the coast overnight."