Cyclone Steve formed in the northern Coral Sea, near Willis Island, and developed into a cyclone at approximately 7 am on 27 February 2000. The cyclone intensified further during the day to reach Category 2 intensity by 1 pm, before crossing the east Queensland coast to the near north of Cairns at approximately 7 pm.

Cyclone Steve caused major flooding between Cairns and Mareeba. A record flood level of 12.4 m was reached at Mareeba at 4.37 am on 28 February 2000, with 90 people requiring evacuation and the railway bridge washed away. Many buildings in Cairns suffered severe water damage including the Cairns Hospital. Wind gusts of up to 150 km per hour caused several buildings in Cairns and Kuranda to lose their roofs. Hundreds of trees were uprooted and powerlines were brought down throughout the district, disrupting supplies to more than 40,000 residents. The two highways to the Atherton Tablelands were closed by fallen trees and landslides. Crop damage by floods and winds was severe, notably the sugar cane industry.

Cairns Emergency Services answered over 1200 calls during the course of Cyclone Steve, while the Disaster Coordination Centre took another 1800 calls. One person from the town of Cardwell was killed by the floods following the cyclone.

The Insurance Council of Australia estimated the 2000 damage at $11 million, with the 2011 estimated normalised cost of $31 million.

NOTE: This is the cost and summary for Queensland exclusively; Cyclone Steve also impacted on Northern Territory and Western Australia.