A new report has found the public has not been clearly informed of the significant flood risks posed by a Queensland dam that fails to meet safety standards.

Key points: A report says the Paradise Dam's spillway falls "well below safety guidelines"

A report says the Paradise Dam's spillway falls "well below safety guidelines" The dam has been plagued by safety concerns since 2005 and it suffered damage in 2013

The dam has been plagued by safety concerns since 2005 and it suffered damage in 2013 Minister Anthony Lynham says is "room for improvement" in communication about risks posed by the dam

The Paradise Dam Preparedness Review, released today, was commissioned by the Queensland Government to investigate how prepared the surrounding community would be for flooding if the embattled dam, south-west of Bundaberg, was to fail.

It found the dam's spillway fell "well below safety guidelines", meaning more than 100 people would be at risk if the dam failed.

"The dam's stability may be marginal in a one-in-50-year event and … the likelihood of failure is significantly increased in a one-in-200-year event," the report said.

"The life-safety risk is calculated to be well above the guidelines' limit for what society is expected to tolerate if there was a failure.

"The most likely failure mechanisms are sliding or overturning of sections of the primary spillway or undermining of the sections by the scouring effect of floodwater on the geology just below the dam."

The dam has been plagued by safety concerns since its construction in 2005, and it suffered damage during flooding in 2013.

A separate inquiry into the structural integrity of the dam is due in April next year.

Water flows over the spillway of Paradise Dam near Bundaberg. ( ABC Wide Bay: Ross Kay )

Communication lacking, Minister concedes

Natural Resources Minister Anthony Lynham argued the community had been informed about the risk of flooding if the dam failed, but conceded there was "room for improvement" when it came to communication.

"We've had community reference groups out there, we've had shed sessions which I've attended, but the risk needs to be more strongly conveyed about the safety of this particular dam," he said.

"Local disaster management groups are well prepared, but this is a risk we've never seen before.

"There are significant safety issues regarding the dam.

"There is a risk of dam failure should we have an event like 2013."

Parts of Bundaberg would likely flood if Paradise Dam did fail during large amounts of rainfall. ( Supplied: Sunwater )

The review recommended flood scenarios in emergency action plans be published in way so members of the public could easily access them.

It also recommended the Paradise Dam siren be tested, and the Bundaberg Local Disaster Management Group and SunWater develop additional emergency alerts to warn residents if the dam failed.

Mr Lynham said dam operator SunWater and the local councils were already planning more community engagement sessions following the review.

"We cannot be complacent," he said.

The review also found Bundaberg and North Burnett councils, downstream of the dam, did not understand the full extent of the risk until recently, despite communicating regularly with SunWater.

Acting North Burnett mayor Faye Whelan said the council would "take note" of the recommendations in the review.

"The Inspector General has several recommendations and obviously from that review North Burnett will make sure that if there's any gap in our preparedness that we'll take good note of that and have it rectified," she said.

"We've had a lot of experience with the unprecedented flooding in 2010 and 2013 so there's a lot of experience there.

"People can rest assured that everyone will be doing their very best to make sure people are safe."