Tropical Cyclone Alfred is sitting 850km northeast of Mackay in northern Queensland and intensified to a category three overnight, producing wind gusts of 185km/h in the Coral Sea.
The system is still moving southeasterly and is forecast to remain well off the coast into the weekend.
It is forecast to remain a category three system until Saturday.
Despite remaining in the Coral Sea, it is expected to cause large, powerful waves and winds on the Queensland coast from Townsville down to K'Gari (formerly Fraser Island).
Waves could exceed three metres along the coastline, sparking a hazardous warning for coastal activities like crossing bars by boat and rock fishing.
The Great Keppel Island Hideaway resort off Rockhampton announced on Wednesday night the island would be evacuated from 10am on Thursday due to the predicted strong winds from Alfred.
It will remain closed until Sunday but could possibly reopen on Monday.
The Bureau of Meteorology has high confidence in modelling over the next two days that the system will remain offshore.
But beyond that, there still are a range of possible scenarios including the cyclone approaching the central or southern Queensland coast or remaining offshore.
"Here at the bureau we analyse a number of computer models. But they've not yet reached a consensus as to whether the tropical cyclone remains offshore or make landfall or approach the coast," meteorologist Jonathan How said on Thursday.
"So the exact move is still a bit uncertain at this stage."
The bureau said the cyclone could move closer to the Queensland coast as early as Sunday if its path changes and tracks southwest.
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