BRISBANE, Aug 17 - Queensland Police's Taskforce Argos, which investigates child exploitation, confirmed it was working with interstate counterparts to try to trace the site.
It's believed students at about 70 schools around Australia are involved.
"The website appears to be in the format of a message chat forum where you can upload photos from various school or various locations around Australia," Townsville Police Detective Senior Sergeant David Miles told ABC Radio on Wednesday.
The Queensland Education Department is concerned about the wellbeing of students after learning of its existence.
"This website is highly offensive. We will work with other agencies- including police- as a matter of urgency to ensure the safety and wellbeing of all our students," a spokesperson said.
Two Tasmanian schools have been linked to the site and the state's education Minister Jeremy Rockliff says authorities are trying to find out more.
"This has taken cyber bullying to another more extreme level," he said told parliament.
"The allegations of an extremely serious cyber safety incident suggest the involvement of two Tasmanian government schools - one college and one school."
Northern Territory police have so far not received any complaints and said there was "no evidence to suggest there's any NT involvement at the moment".
Victoria Police said it was aware of the site and confirmed it was hosted overseas.
"Joint Anti-Child Exploitation Team are currently investigating and it would be inappropriate to comment further," it said in a statement.
Police are urging young Australians to be careful when posting and sharing photos on social media.
"They can spread quickly and sometimes be impossible to remove," Victoria Police said.
Victoria's Department of Education and Training said it was "disgraceful" to see students targeted in this way.
From next year, Victorian students will receive mandatory respectful relationships education.
"The Department takes the safety and wellbeing of students very seriously," a spokesman said.
NSW Police Force has confirmed officers are aware of the website and the sex crimes squad has been liaising with state counterparts to determine whether any offences have been committed in NSW.
On Wednesday police issued a warning to anyone involved in taking, transmitting or possessing child pornography images.
"This also applies to teenagers... they should be aware they could be arrested and charged, and if convicted end up with a criminal record," a NSW Police spokesman said.
The NSW Department of Education has also urged parents and students with concerns to contact local police.
Counselling will be provided to any students affected.