The Bureau of Meteorology says the tornado is part of a larger weather system it has been monitoring.
The tornado has ripped through the Central West of New South Wales this afternoon, injuring three people and destroying properties.
Most of the damage was at Meadow Flat, between Lithgow and Bathurst, where trees were uprooted and roofs were torn off homes.
Storm chaser Jimmy Deguara says tornados are significant for Australian weather conditions, but they do happen.
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