Australia's federal government announced on Friday that it would extend financial assistance to communities hit by ex-tropical cyclone Grant. The money could be used to repair damaged bridges and roads and to help the battered areas recover.

The help would be coursed through the Natural Disaster Relief and Recover Arrangements (NDRRA), said Minister for Emergency Management Robert McClelland and Northern Territory Chief Minister Paul Henderson.

The Commonwealth and Australian states jointly fund the NDRRA.

To estimate the extent of damage caused by Grant, a detailed assessment is being made in affected areas, Mr Henderson said.

He also warned residents to stay away from waterways, particularly flood waters, because of the possibility that crocodiles abound in the region. He advised them to avoid inundated waterways at all costs.

The Stuart Highway was flooded because of swelling to dangerous levels of the Cullen and Edith Rivers and the damaged to several bridges north of Katherine. The Stuart Highway is scheduled to reopen at 6 p.m. on Friday, Mr Henderson said.

According to the Australian weather bureau, Grant is moving east towards the Gulf of Carpenteria at about 19 kilometres per hour. The bureau warned that the ex-tropical cyclone may redevelop into a tropical cyclone on Friday.

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