The officers were responding to reports of a missing person in Wieambilla - 270km (168 miles) west of Brisbane.
The offenders are still at large, the police said at a news conference. Residents are being told to remain indoors "until further notice".
Katarina Carroll, Queensland Police Commissioner, said four police officers attended the property.
One received a "bullet graze", while another escaped the property. Both are receiving treatment in hospital, she said.
Ms Carroll said the offenders are yet to be taken into custody, and that the police operation involves PolAir - which provides aerial support to police - and specialist forces.
She added that it is the largest loss of life suffered in one incident in recent times, paying tribute to the officers who "paid the ultimate sacrifice to keep our community safe".
Mark Ryan, Queensland Police Minister, also spoke at the news conference, describing the incident as "a traumatic, confronting and devastating event for our community".
Australian Prime Minister Anthony Albanese said it was a "heartbreaking day for the families and friends" of the Queensland Police officers who lost their lives in the line of duty.
Peter Dutton, a former Queensland police officer who now leads the opposition Liberal Party, said the murder of police officers was "deeply distressing".
"Police officers face danger every day," he said.