The Royal Australian Air Force (RAAF) EA-18G Growler caught fire on the runway at the Nevada base on Saturday.
Photos taken from the scene showed the wreckage of the blackened twin-engine military jet on the runway.
It caught fire soon after taking off and the pilot was forced to eject from the aircraft.
The Australian Department of Defence has now revealed the plane was destroyed during a joint training exercise called Red Flag 18-1.
Planes from the RAAF, US Air Force and British RAF had all been taking part in the drill.
Focusing on air-to-air combat, Red Flag started on Friday and is due to last three weeks.
Planes were taking off twice daily to take part in drills on the Nevada Test and Training Range.
Red Flag training sessions are held regularly to train for strike missions and improve pilots’ readiness for combat.
With the US on alert over rising tensions in North Korea and Russia, this drill was the largest ever held by the country’s air force and aimed to try a number of new techniques.
Launching it, Colonel Michael Mathes, 414th Combat Training Squadron commander, said: “We’re trying a few new and different things with Red Flag 18-1.
“It’s the largest Red Flag ever with the largest number of participants, highlighting the balance of training efficiency with mission effectiveness.”
The Growler fighter involved in yesterday’s crash entered service in 2017, is powered by two General Electric engines and can reach speeds of 1,960km/h.
An Australian Defence Department spokesman said: “Royal Australian Air Force personnel are safe and no serious injuries have been sustained.
“Defence is currently working with the United States Air Force to investigate and will provide an update with further details once known.”
The US Air Force said: “At approximately 10.45am , a military aircraft experienced an incident during takeoff on the Nellis Air Force Base flight line.
“The aircraft was required to abort its take-off and subsequently caught fire. However all personnel are safe.
“The cause of the incident is unknown and is under investigation. Details on the incident will be released as they become available.”
Consultancy group and security experts Strategic Sentinel said the plane had suffered “critical engine failure”.