The fire broke out early this morning.
The fire broke out early this morning. Rodney Stevens

'Lucky we got the kids out': Shock as home goes up in flames

UPDATE 9.30AM: Gladstone QFES station officer Dale Iwanicki described firefighters' efforts as a 'great save'.

Two fire fighters in breathing apparatus were initially dispatched to the rear of the home, situated on a battle-axe block, then two more officers were deployed to the top level of the home.

There were four people in the house at the time including children.

"We are not treating it as suspicious at the moment," a QFES fire investigation officer said.

"It has broken through the floor (between the  bottom and top level s of the home."

UPDATE 9.15AM: The homeowner said it was lucky she got her children to safety.

"Everyone is alright," the woman said, sitting on a neighbours veranda wrapped in a blanket.

"It's lucky we got the kids out."

A QFES officer is currently interviewing the woman.

A neighbour only two homes away slept through the entire incident.

"I just woke up," he said.

"S..t," he said as he looked out his front door to see two fire trucks and a police car. 

Initial investigations show the fire started in a lower level storage room of the Erin Close home. 

It spread to the back of the house and then the top level of the home. 

The extent of damage is at this stage unknown. 

INITIAL: EMERGENCY Services were called to a structure fire at New Auckland just after 7am.

A Queensland Fire and Rescue spokeswoman said three tankers responded to reports of a structure fire in Erin Close at 7.15am.

"When QFES arrived there was an incident in evidence," the spokeswoman said.

"The structure as well involved in fire.

"There was smoke issuing from the roof and the rear of the structure."

Police and Ambulance paramedics also responded to the structure fire which was estimated to be 30 metres by 20 metres in size.

"There were multiple internal and external fire exposures (points of the structure on fire)," she said.

"At 8.45am crews reported the fire was under control.

"The fire was 90 per-cent extinguished.

"Crews are now dampening down hot spots."

More to come.