An attacker reportedly yelled "Allahu Akbar!" - "god is great" in Arabic - as he stabbed a woman to death and wounded two people at a backpackers' hotel just south of Townsville in northern Queensland.

"While this information will be factored into the investigation we are not ruling out any motivations at this stage, whether they be political or criminal," Queensland Police Service Deputy Commissioner Steve Gollschewski said.

Investigators say the 29-year old man from France is here for a year on a valid tourist visa, and had no known links to radical groups such as Islamic State.  He also appears to have acted alone.  The stabbing took place in front of 30 horrified witnesses at Shelley's Backpackers in Home Hill.  The victims are a 21-year old British woman who was killed, and a 30-year old British man who is in hospital being treated for non-life threatening injuries.  A local man was also hurt, and was treated and release from hospital.  A dog from the hostel was also killed.