The storm swept through Charleville in south-west Queensland on Tuesday, knocking down trees and causing minor damage.
The scene prompted many residents to post photos and videos on social media.
Authorities said recent weather conditions had allowed strong winds to pick and spread dirt from the region.
“We do see a fair few dust events through the western parts of Queensland because it is such a dry and hot place, but it’s definitely one of the more impressive events of the last few years,” said Harry Clark, from Australia’s Bureau of Meteorology.
He estimated the dust storm was about 200km (124 miles) wide. It recorded winds of up to 96km/h (60pmh), while visibility at the local airport was reduced to about 200m.
Some locals in the town, about 740km (460 miles) west of Brisbane, said the storm caught them by surprise.
“We heard thunder, so we went outside…and we turned around and there was this big red dust storm coming along,” Paige Donald told the Australian Broadcasting Corp. (Courtesy BBC)