Up to 50 motorists may be entitled to compensation over the incident in Queensland on Tuesday, reports said.
“I have never seen anything like it and when the reports started coming through yesterday, it was just incredible,” local mayor Joe Paronella told the ABC.
The incident has been blamed on a change in weather, and damage to the road after it was resealed last week.
Local resident Deborah Stacey said “big globs” of tar had stuck to vehicles, amid hot weather that followed several cooler days and rain.
“We had a week of cracked windscreens… then as soon as the sun came out, it started sticking,” she told the Courier Mail.
The tar meant tyres on several vehicles had to be replaced, and it caused damage to bumper bars and panels.