Australia Weather News

A tornado has been observed in central NSW, with a severe weather warning issued for the area.

The Bureau of Meteorology (BOM) earlier issued a tornado warning for areas near Young and Cowra.

The State Emergency Service also issued a watch and act alert, asking people to stay indoors in those areas.

The tornado warning has since been cancelled, but the BOM said severe weather was still likely with possible hail, damaging winds and heavy rain.

NSW RFS inspector James Morris said the tornado was spotted at about 3:30pm.

"The Rural Fire Service fire tower cameras picked up what was believed to be a very significant weather cell building to the north-west of Young, around [an area] called Tubbul," he said.

"That fire tower camera picked up the cell, which was then sent through directly to our fire behaviour analyst team through to the Bureau of Meteorology, which we believe provided notification and warning of what we believe would be a tornado cell forming in in that area."

Mr Morris was unable to confirm how long the tornado lasted, but said the early indications were that it was not very destructive.

"At this stage, there's no reports of any injuries or significant damage," he said.

"However, given that that cell is still moving through the area, we will hopefully see … whether emergency services do receive any further calls for assistance."