Police say squatters have moved into homes in Bundaberg, in south-east Queensland, abandoned after the city's major flood.
Parts of North Bundaberg inundated by floodwaters in January are still cordoned off.
Officers have reported that a number of people were living in two flood-affected properties in recent weeks.
No-one has been charged but police say they are investigating whether any property has been stolen.
© ABC 2013
18:15 EDT An Australian Urban Search and Rescue taskforce has returned from Vanuatu after a 10-day operation to repair schools and hospitals in Port Vila after Cyclone Pam.