Police confirmed that emergency services were at the scene in the regional centre of Bathurst, some 175 kilometres (110 miles) west of Sydney, but could not say whether any people were still inside the building.
The Australian Broadcasting Corporation said that 16 people were believed to be stuck inside the Metro Cinema.
Police said emergency personnel were called to the venue at about 0145 GMT
after a heavy storm caused parts of the roof to cave in.
"It is still unknown if there are any injuries at this stage," a spokeswoman for New South Wales police said.
Flooding has caused havoc across a massive area of northeastern Australia, but the latest incident was unrelated.

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