An emergency warning has been issued and thousands are bracing for Tropical Cyclone Narelle ahead of its landfall in the Northern Territory, with winds of up to 195km/h expected.

The highest-level warning had been issued around midday on Saturday and extends to Nhulunbuy to Port MacArthur, including Borroloola, Numbulwar, Alyangula and Gapuwiyak, the NT fire and emergency services commissioner, Andrew Wharton, said.

Residents were warned it was too dangerous to travel.

“If you’re a sheltering at home, move to the smallest, strongest, most protected room in your house such as a bathroom or a toilet,” Wharton said.

“Rooms with few or smaller windows are better, though better than those with larger windows.”

“We implore you, wherever are in the impact of this cyclone, please do not venture outside into the storm. It’s dangerous.”

Cyclone to hit NT at 3am

The Bureau of Meteorology has warned more than 10,000 residents from Nhulunbuy to Port McArthur, including Borroloola, Numbulwar, Alyangula and Gapuwiyak that Narelle would strengthen as it approaches.

Narelle was downgraded from a category 4 to a 2 as it moved through the Gulf of Carpentaria after making landfall across Cape York on Friday, but was forecasted to hit eastern Top End late Saturday as a category 3.

As of 12.30pm NT time, BoM maintained its forecast for Narelle making landfall at around 3am. It was moving west in the Gulf of Carpentaria at around 20km/h, before it was due to cross the eastern Top End.

Very destructive winds gusting up to 195km/h were forecast in some areas into Sunday while heavy rain may cause flash flooding. Rainfall is expected to be between 150mm and 200mm daily as the system passes through, but up to 300mm was also possible.

Rainfall is expected to peak on Sunday and Monday, with potential major flooding for Katherine River, Daly River, Waterhouse and the Adelaide River catchments.

Evacuations to Darwin

On the Gulf of Carpentaria coast, the defence force has evacuated almost 150 people from the community of Numbulwar, with hundreds more to be flown out as Narelle approaches.

The federal emergency management minister, Kirsty McBain, on Saturday morning said Defence had embedded an air liaison officer in the Northern Territory emergency operating centre.

She also said the National Critical Care and Trauma Centre has deployed a team to Katherine for health assessment and clinical resources, including a field hospital should it be required.

In Darwin, about 500 people from Numbulwar made Nightcliff High School’s gym their new home ahead of the cyclone impacting their community.

The Australian government disaster recovery payment has been activated for areas including Chinchilla in Western Downs, Bundaberg central, east, north and south. In the NT this will be extended to Daly River and in the Victoria Daly, and Lansdowne in Roper Gulf.

The payments will be made available from 2pm on Tuesday, with residents advised to check the Services Australia website.

“Additional assessments will be made for impacted areas by Tropical Cyclone Narelle as soon as possible,” McBain said.

Katherine to flood by Monday

In Katherine, 4,000 sandbags were sent to the community with 110 tonnes of sand used in preparation for rivers rising and potential flash flooding.

“We are expecting moderate to major flood levels in Katherine come Monday,” NT chief minister Lia Finocchiaro said.

“The community is obviously still reeling over last week’s flood and are now in full-blown preparation mode, getting themselves and their families and their businesses ready for what might come.

“With Numbulwar, everyone has been evacuated, which is terrific news.”

Katherine mayor Joanna Holden told AAP the town’s population of 10,000 was taking the forecast seriously and preparations were under way, with sandbagging crews in action from Thursday.

Many properties that had water through them had been cleaned out but other clean-ups were on hold in case buildings flooded again.

The mayor was worried volunteers were becoming exhausted after two weeks of helping with the recovery from the last flooding event earlier this month.

“To have to go back again and potentially have to clean out the same places and see the same devastation, that takes its toll,” she said.

Matthew Ryan, chair of the Northern Land Council in the NT said he had concerns about the quality of care in evacuation centres.

“There’s reports of the food, the bedding, it’s not good enough,” he told the ABC.

“There’s some people [who] have been sleeping without mattresses which is appalling… We should have been better prepared now rather than being reactive. Every time they start from scratch.”

For Queensland, ‘today is a blessing’

The clean-up in far north Queensland began on Saturday. There were no rescues required or casualties, authorities said, while damage was mostly structural or fallen trees.

“There are some key watch points for residents in the Cape York peninsula today, and the first of those is the rivers, which are still raging, water flowing much higher than usual, spilling over the banks and across roads,” the bureau’s senior meteorologist Angus Hines said.

“This is likely isolating communities in the far north of Queensland and making it difficult to get out and assess the damage, reach remote locations and top up supplies.”

Across Cape York, around 1,100 people were without power as of Saturday morning.

The Queensland premier, David Crisafulli, said at a press conference in Cooktown there were reports of waves of over 5m off the coast of Weipa, he said, but the rain hadn’t continued on Saturday morning, he said.

“Today is a blessing and we certainly welcome the fact that the prolonged rain hasn’t continued,” he said.

He said Narelle “walked a tightrope” perfectly between Coen and Lockhart River, before ducking south of Aurukun and existing on the western side of Cape York.

“The fact that it went right between two of the larger populated centres was a real blessing.”

He said besides downed trees, there were still some power and telecommunications issues, and the prospect of higher tides and waves.

He said there was a vessel that hadn’t been identified in Princess Charlotte Bay, and authorities were keen to find that vessel.

Three emergency helicopters were due to be in the air on Saturday, conducting damage assessments across 16 communities, with a focus on the roads, Crisafulli said.

A decision on whether to reopen schools in the area will be made by 5pm AEST on Sunday.

The Queensland government will provide 10 storm pods to assist the NT in recovery from Narelle. The pods contain equipment that can aid with recovery, and they were travelling from Townsville on Saturday.

On reports of an overcrowded evacuation centre in Coen, Crisafulli said that the advice was for people to make preparations and stay at home if possible, but conceded that the government could always look to do better in preparing for such events.

Narelle is expected to track over the Northern Kimberley and move offshore to the Indian Ocean from Tuesday.