The government authority announced the road closure on social media platform X
The woman, aged 60, is reported to have had a seizure during the event at a hotel in Hervey Bay, Queensland, to mark Australia Day on Sunday, the BBC said in a report.
She was given CPR at the scene and taken to hospital but later died.
Witnesses said the woman had crammed one of the cakes into her mouth when she appeared to get into difficulties.
The Beach House Hotel in Hervey Bay posted a message on Facebook expressing condolences to the family and friends of the woman, who has not been named.
Eating competitions are a popular game during Australia Day, a national holiday marking the arrival of the first Europeans to Australia.
Contestants usually win prizes for eating as many cakes, pies, hot dogs or other food in a limited time.
The government authority announced the road closure on social media platform X
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