The video shows a police officer confronting a group of Indigenous teenagers and their parents at Murgon, about 250km north-west of Brisbane, in Queensland.
The officer is seen grabbing two young Indigenous females from the group - one reported to SBS World News as being a high school student.
The student allegedly grabbed by the officer is shown in a school uniform and appears to be in distress.
Queensland Police Service said in a statement they were aware of the incident and it was now under investigation.
“The matter has been referred to the Ethical Standards Command. As the matter is now under investigation it would inappropriate to comment further at this time," the statement said.
The caption to the video alleges the young teenage girl, who was grabbed by the officer, was trying to return his car keys.
“The officer dropped his keys and the girl picked them up and stood there holding her hand out for him to grab them but chose to throw himself at her instead," the caption reads.
The video has been shared more than 400,000 times on Facebook.