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Australian Prime Minister Julia Gillard has visited Bundaberg, New South Wales, the city hit hardest by severe floods caused by the tail-end of Cyclone Oswald.

Six people have been killed by the flooding since Tuesday, when water engulfed around 2,000 homes and 7,500 residents were evacuated.

Gillard, who is at the start of a re-election campaign, announced extra disaster funding for people in the most stricken areas of the city.

Officials are still searching for missing people and trying to help those stranded.

Elsewhere, authorities said they were relieved that much of New South Wales appeared to have escaped the worst. But debris continues to wash up on beaches across the state.

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