Garry Kirstenfield acquired the virus while on the Royal Caribbean cruise ship that docked in Sydney last week.
He died this afternoon at Toowoomba Hospital where he had receiving treatment in the intensive care unit.
His wife and immediate family are in self-isolation.
The 68-year-old's family paid tribute to him, saying he will be remembered for being “kind and adorable”.
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Queensland Health says Mr Kirstenfield has an underlying health condition before he was infected with the virus.
"Queensland Health offers its sincere condolences to his family. The man’s family remain in isolation as close contacts," the department said in a statement.
The Queenslander's death is the ninth in Australia from coronavirus. There are 2431 cases of COVID-19 in the country.

