UPDATE 5PM: Tropical Cyclone Penny has made landfall near Weipa, crossing the coast as a category one storm.
The system is expected to be downgraded to a tropical low as it continues to track east across the Cape York Peninsula this evening.
However, its future movement remains unclear with the Bureau of Meteorology showing that it may reform into a cyclone as it drifts over the Coral Sea, and potentially return toward the North Queensland coast.
Bureau of Meteorology weather services manager Richard Wardle said Cyclone Penny's life will be relatively short-lived.
"Tropical Cyclone Penny made landfall just south of Weipa around 4pm this afternoon, where it will again weaken to a low as it moves over the Peninsula and re-enters the Coral Sea tomorrow morning," Dr Wardle said.
"In the longer term, ex-tropical Cyclone Penny is forecast to move further into the Coral Sea, where it may redevelop into a category 1 or 2 system later this week.
"It's too early to determine the cyclone's possible movement beyond this point, but some models indicate it could curve back towards the Queensland coast as a low."
A Flood Watch remains in place for catchments in Cape York Peninsula north of the Daintree and Mossman Rivers. Catchments between Cardwell and Cairns have been removed from the Flood Watch area, with heavy rainfall is no longer expected.
A minor flood warning remains in place for the Daintree River and Mossman Rivers as a result of recent rainfall, and these rivers are expected to continue to fall today.
Flood Warnings for the Tully, Murray and upper Herbert catchments were finalised earlier this morning, when river levels eased below the minor flooding level.
EARLIER: A TROPICAL cyclone is expected to cross Cape York this afternoon after it rapidly formed in the Gulf.
Tropical Cyclone Penny is expected to make landfall near Weipa as a category one storm about 4pm today.
The Bureau of Meteorology said TC Penny formed in the eastern Gulf of Carperntaria earlier this morning and was moving eastwards toward the Cape York Peninsula.
It is currently located 90 kilometres west of Weipa and 100 kilometres northwest of Aurukun and is moving at 9km/h.
Gales of up to 120 km/h are occurring on the western Cape York Peninsula coast between Cape York and Aurukun, with gales expected to extend south to Cape Keerweer and to adjacent inland areas of western Cape York Peninsula this afternoon and evening as the cyclone approaches the coast.
Isolated damaging wind gusts may occur otherwise with monsoonal thunderstorms over the Torres Strait Islands and northeast Cape York Peninsula.
Heavy rainfall which may lead to flash flooding, is likely across Cape York Peninsula and parts of the North Tropical Coast today and Wednesday.
A flood watch remains current for coastal catchments north of Cardwell, including catchments across the Cape York Peninsula.
Tides are also expected to be higher than normal through Torres Strait and along the northwest Cape York Peninsula over the next couple of days.
TC Penny is the second cyclone of the season to make landfall in Queensland, following Cyclone Owen, which crossed near Kowanyama as a category week category three system on December 15.
Ex-cyclone Owen was downgraded to a low pressure system shortly after making landfall and brought widespread rain to areas of the northern coast.
The town of Halifax near Ingham was dumped with a record-breaking 681mm in just 24 hours, making it the wettest December day anywhere in Australia on record.
The rain was heavier than forecast and caught some off guard, including Macnade farmer Dan Cordner, of Bellasato Farm, who lost 281 of his prized Sommerlad chickens which drowned in a paddock when water rapidly rose.