THE South Coast of NSW is bracing for wild weather, while heavy rains have fallen on eastern Victoria and Tasmania.
Winds up to 135 kilometres an hour have begun lashing southern NSW damaging dozens of homes.
Emergency services say the town of Narooma was hit early this morning with about 50 homes damaged roofs being torn off and trees crashing down.
The weather bureau says Batemans Bay will be next with gale-force winds and torrential rain that's likely to cause flash flooding.
The SES is warning people to stay indoors keep off beaches and stay away from creeks storm drains and causeways.
It says Sydney will avoid the brunt of the storm but is likely to cop heavy rain and winds.
Meanwhile motorists had to be rescued after being trapped in their cars in flooding on Tasmania's east coast on the weekend.
The St Marys and Bicheno townships were lashed by more than 150mm of rain, which caused flash flooding on Friday night and Saturday morning.
Another 50mm of rain is expected on Sunday but the worst of the extreme weather and flooding is over, the Bureau of Meteorology says.
Moderate flood warnings remain with many rivers in the South Esk River basin and other areas still flooded.
The bureau warns that strong and dangerous flows will be a hazard throughout all reaches of the South Esk River over the weekend and early into the week, with flooding of some roads and bridges.
"There is some residual flash flooding from the severe thunderstorms, we have continued to see rain since then," bureau forecaster Rachel McInerney told AAP.
Tasmania's State Emergency Service (SES) urged people not to drive through floodwaters after seven people were rescued from their cars.
Many roads were left underwater, including three main roads into St Marys, about 130km east of Launceston, rock slides threatened cars and the main town hall in St Marys was opened for displaced residents.
The Tasman Highway, about 5km north of Bicheno, was also flooded.
The SES says the damage bill will be in the tens of thousands of dollars, with property owners now cleaning up.
The Gray township had 192mm of rain, breaking the monthly record
In Victoria heavy rain in the far East Gippsland region over the weekend has led to flood alerts.
More than 50mm of rain has fallen near Mallacoota, close to the NSW border.
If more than 50mm falls again on Sunday, some flooding may occur, Bureau of Meteorology senior forecaster Dean Stewart said.
A flood watch has been issued for the region, which is not as serious as a flood warning but reminds people to be careful and not walk, ride or drive through floodwater and stay away from waterways and stormwater drains.
"We are monitoring the situation, there is a low pressure system off the east coast and we could get heavy rain that leads to flood warnings," Mr Stewart told AAP.
"It's not out of the question."
More extreme weather is being felt over the border on the NSW south coast with gale-force winds and torrential rain.
The conditions will push rainfall for the Gippsland region above the May average after a dry month, Mr Stewart said.
Melbourne has only had 23mm of rain in May, well under the 56mm average but it has been a wet month in Victoria's west with falls up to double the average in some places around the Murray River.
