The tractor driver was killed when the empty train hit his vehicle near Calen, according to the ABC.
A QR spokeswoman told the broadcaster the train driver was uninjured and the track was not damaged, but the locomotive needed repairs.
Sugar transport industry leaders hope the tragedy will highlight the importance of ensuring a safe workplace.
John Powell from the Cane Harvesters Organisation says risk management procedures are essential.
"It's mainly human error, as I see it," he said.
"Haul-out drivers, just as car and truck drivers, have to follow the rules of the road and rail crossings are particular hazards, particularly for cane haul-out units, which are slow moving and long."
