The single-engine charter aircraft was carrying a pilot and five passengers when it collided with terrain while approaching an airstrip at Groote Eylandt in the Gulf of Carpentaria on Friday afternoon.
Emergency services were called and five people were treated at the scene, with at least two of them taken to hospital in a serious condition.
The Australian Transport Safety Bureau said the plane experienced engine problems.
"During take off, the aircraft experienced engine issues and the pilot attempted to return to Groote Eylandt," ATSB chief commissioner Angus Mitchell said.
"During approach, the aircraft collided with terrain and came to a rest inverted."
An investigation is under way to establish the circumstances leading up to the crash.
The ATSB will deploy a team of transport safety investigators to examine the plane wreckage and accident site.
Investigators will also obtain and review any recorded data, weather information, pilot, passenger and witness reports, aircraft operator procedures and maintenance records.
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