After the blue smoke started flowing, the car caught on fire. The driver and the rest of the people had to run as the car continued to burn.
A Queensland Police Service spokeswoman said this was a rare occurrence for them.
"This is the first one I've seen like this. Usually, people just have a cake," the spokeswoman told The Washington Post.
One man was eventually convicted of dangerous operation of a motor vehicle, CNN reported.
He was fined $1,000 and wasn't allowed to drive for six months, The Washington Post reported.
Queensland Police Service Sgt. Hilton Buckley had a few words of wisdom for those who want to do a gender reveal.
"I know people like to do unique things for gender reveals these days, but use a bit of common sense," Buckley told 7 News Brisbane.