Residents of remote communities in northern Australia took shelter Sunday as a massive cyclone packing destructive winds of up to 320 kilometres (200 miles) an hour bore down on them.

The sparsely-populated islands off northeast Arnhem Land were expected to bear the brunt of Tropical Cyclone Monica but gales, high tides and floods could hit a huge area, including the town of Darwin, the weather bureau warned.

Darwin, capital of the Northern Territory, was devastated in 1974 by Cyclone Tracy, which killed 71 people and left 20,000 homeless.

Monica is ranked as the most powerful of cyclones — category five, the same as Cyclone Larry, which smashed into the eastern Queensland coast less than a month ago, causing more than one billion dollars in damage.

Hundreds of people gathered in cyclone shelters or buildings designed to withstand a pounding from extreme weather in towns such as Nhulunbuy in the Gove Peninsula mining area, while evacuations were underway on some islands.

"They've taken people from the lower area overnight in case there was flooding and they have taken them to the school — there's one of the buildings there built to cyclone codes," a resident of Elcho Island told national radio.

Northern Territories Emergency Services Minister Paul Henderson said people needed to prepare a cyclone kit including medicines, food and water, a torch and a radio.

Nhulunbuy, the most populated area of Arnhem Land with about 4,000 residents, would miss the worst of the storm, said weather bureau spokesman Mike Bergin.

Monica caused widespread flooding as it passed over the far north of eastern Queensland state last week before picking up power as it crossed the Gulf of Carpenteria.