On 16 January 2002, a severe thunderstorm developed south of Grafton and intensified as it moved north-east toward the coast. Hail and heavy rain were reported at Grafton; at Lismore, damaging winds, flash flooding and hail the size of golf balls were reported. The storm was at its highest intensity as it crossed the coast at Kingscliff. Flash flooding, seven-centimetre hail and a tornado occurred. Damage was reported at Kingscliff and neighbouring Banora Point.

The New South Wales State Emergency Service deployed approximately 300 volunteers to assist 1000 homes across the state.

The Insurance Council of Australia estimated the 2002 damage at $10 million, with the 2011 estimated normalised cost of $36 million.