Australia's third largest city of Brisbane was compared to a war zone as floodwaters began to recede Thursday, revealing the extent of damage.

The waters left behind mangled tractor trailers, completely destroyed homes, and even a car hanging from a tree.

Throughout Australia, more than 3,500 people have been evacuated and nearly 20,000 homes are completely underwater.

The death toll is at 25, but that number is increasing as rescuers continue to recover bodies.

"We've got to brace ourselves for more bad news," said Deputy Police Commissioner Ian Stewart.

"Queensland is reeling this morning from the worst natural disaster in our history and possibly in the history of our nation," a shaken Premier Anna Bligh told reporters. "We've seen three-quarters of our state having experienced the devastation of raging floodwaters and we now face a reconstruction task of postwar proportions."

Forecasters warn there could more severe flooding.

The country has two months left in its rainy season.