The pileup occurred Sunday during a race at the Avalon Raceway in Lara, a small town southwest of Melbourne.
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Video captured by a person in the stands shows a car driven by Tim Hutchins involved in a collision that saw Hutchins's car flip into the air before being stopped by a catch fence as spectators ran for cover.
The race was ultimately stopped. Crews used a crane to remove at least one car from the mangled catch fence.
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A Facebook page for Hutchins Motorsport T7 said their driver was "a little stiff and sore but soldiering on as he always does."
Storyful contributed to this report.