The mother and 16-year-old were caught in the slide, the boy buried under two metres of snow.
The family issued a call for help after running into trouble while skiing off-piste near the St Anton resort in Tyrol, a police spokesman said late on Wednesday.
'Max Meyer was about to enter Year 11, and his life has been tragically cut short, ' the principal, Shauna Colnan, said.
The teenager's German father and younger brother were uninjured in the avalanche.
Media reports out of Austria say the family were skiing together when they became stuck in hard terrain, and called for help.
Max Meyer was a student at Sydney International Grammar School.
The Daily Mail quoted a police statement saying the avalanche had "covered the mother and also the 16-year-old son".
The school has reopened today and will be open next week for any students in need of counselling or support.
Camera Icon Workers had to use heavy machines to clear huge masses of snow from the streets of Sankt Anton
The Australian Department of Foreign Affairs and Trade said it was aware of reports of an Australian's death in the nation.
Six German teenagers fortunately emerged alive from an avalanche that engulfed them at the Wildkogel resort in Austria's Salzburg province.
Several railway lines in the Alps were closed because of the snow, and schools were closed in parts of Bavaria.
Heavy snowfall continued on Thursday in parts of Austria and southern Germany, with several places cut off and the bad weather expected to persist.
The Weather Channel reported that more light snow was expected over south-east Europe on Friday with Greece to western Turkey remaining unsettled under low pressure with a mixture of rain and snow.
It comes amid a huge downpour of snow in the region and the wider Alps area, with several other people killed.
On Norway's Arctic Svalbard islands, more than 100 people were evacuated as a precaution because of a storm and the risk of avalanches.More news: Detroit Pistons star Blake Griffin gets standing ovation in return to LA
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