ALI MOORE, PRESENTER: Cyclone Yasi has claimed its first life and although another two people were initially reported missing, they've both been found safe and well.

The tragic news comes as residents begin the heartbreaking clean-up of hundreds of homes and businesses that were battered by the storm.

Many communities remain without power and safe drinking water.

But, as James Kelly reports, help and some essential supplies are starting to trickle through.

JAMES KELLY, REPORTER: Like many Far North Queensland coastal communities, Tully Heads, halfway between Cairns and Townsville, didn't stand a chance.

DAVID HUGHES, RESIDENT: Devastated. Yeah, devastation, just tears. Tears of just all the hard work that people have done. You know, you come down here and just everything's gone.

JAMES KELLY: On Wednesday night Cyclone Yasi, coupled with a storm surge, unleashed its fury, pounding hundreds of homes.

MAL MALLYON, RESIDENT: Yeah, pretty knocked up. Yeah and shell-shocked I suppose is a good word for it.

JAMES KELLY: As residents returned to their ruined homes, it was the Queensland Premier who delivered the news everybody feared.

ANNA BLIGH, QUEENSLAND PREMIER: We can confirm the first Cyclone-related death.

JAMES KELLY: A 23-year-old man died at Bambaroo, near Ingham, as he took shelter. He was using a power generator in a closed room.

BOB ATKINSON, QUEENSLAND POLICE COMMISIONER: Unfortunately there wasn't sufficient ventilation. He was found by a relative.

JULIA GILLARD, PRIME MINISTER: To see such a young person die like this is a real tragedy.

JAMES KELLY: At Cardwell there were fears one man was swept away by the storm surge. But he emerged from the mangroves today where he had been sheltering from the cyclone.

ANNA BLIGH: We have many, many communities that now are without any power which means that their water treatment plants are not able to work.

JAMES KELLY: The Premier pleaded with residents to be patient, saying it took four weeks for electricity to be fully restored after Cyclone Larry.

While bad weather hampered the relief effort yesterday, the Army rolled in to Ingham overnight.

Soldiers were briefed on what they could expect.

NEIL ROBERTS, EMERGENCY SERVICES MINSTER: There are large teams of people in the area and moving into the area today and over the weekend to provide that additional support.

BOB ATKINSON: The other think we're doing is putting two Water Police vessels off Cardwell. One of those is a very large vessel and it's like a mobile police station.

JAMES KELLY: Police say they're out in force. Six people have been arrested for looting in Townsville.

Help is also on its way from outside the State. SES (State Emergency Services) volunteers flew north this morning from Canberra.

TONY GRAHAM, CHIEF OFFICER ACT SES: The tasking will be quite varied as we understand it, particularly about assisting residents in recovering their valuables from their properties. Particularly those residents that have lost their homes.

JAMES KELLY: The Federal Government is also poised to hand out disaster relief payments. As the Prime Minister toured Innisfail and Townsville she announced payments of $1,000 for every adult affected by the cyclone, $400 per child.

Yasi has sparked fresh debate about the Federal Government's proposed flood levy. Julia Gillard says she won't be using it to rebuild cyclone affected areas.

JULIA GILLARD: No we won't. We will need to find additional resources in the Federal Government's budget.

JAMES KELLY: Exactly what Tony Abbott's been saying all along.

TONY ABBOTT, OPPOSITION LEADER: The Prime Minister knows that there are savings there in the budget.

ANNA BLIGH: This is a catastrophic event and it requires all of us to rise to the occasion. And that means politicians putting politics aside.

JAMES KELLY: While the exact cost of the cyclone won't be known for some time, the Federal Government spent half a billion dollars after Cyclone Larry.

Tonight, the town of Cardwell remains cut off.

The Weather Bureau has issued flood warnings for a number of rivers between Cairns and Townsville.

James Kelly, Lateline.