According to 7News, the animals ran in front of the bus in Central Queensland at around 5:15am after escaping from a nearby farm in Nankin, Rockhampton.
Both camels also died as a result of the accident, which led to the road being closed in both directions for several hours.
It is believed the driver was heading out to begin the morning run when the incident occurred.
Authorities were alerted after another driver passed the scene that morning.
Nobody else was on board the bus at the time, according to police.
Detective Inspector Luke Peachey said: "It appears that the bus driver has collided with two camels and as a result, the bus driver has lost his life."
The animals belonged to veteran camel breeder and racer, John Richardson.
Mr Richardson explained that four camels had in fact managed to lift a gate of their enclosure, two of which headed to the highway.
"I'm just devastated," he told ABC News after discovering the gate in question along his fence line.
"I've never had a gate come off like that."2023-06-05T23:42:51Z dg43tfdfdgfd