This page is a census of known examples of the 1895 one penny orange-red issue overprinted with the word 'Cancelled.' This handstamp was introduced in the early 1870s to cancel proofs and other samples to be retained by the authorities (Kenneth Scudder, Queensland Postage Stamps 1879 to 1912, p. 366)
It was typeset with sans-serif capitals, 21 mm long and 2.75 mm high. It was applied in black ink on mint gummed issues, wmk 2nd type "Crown Q", perforation 12.5, 13. Known horizontally and diagonally up. It is extremely scarce and rated 5R
All examples seen by me also have a circular ring cancel, which was usually applied to the junction of 4 stamps to cancel stamps as an alternative to a handstamp or overprint for presentation purposes or to be retained by the authorities. Why it was applied in these cases is unclear.
1d orange-red roughly perforated 12.5 x 13 stamp with a horizontal Cancelled handstamp and circular ring cancel. Seen in the Queensland Stamp Collecting Facebook Group
1d orange-red roughly perforated 12.5 x 13 pair on Cowan watermarked paper with a horizontal Cancelled handstamp and circular ring cancel. Seen in the collection of Dr Andrew Mortlock. Ex Alan Griffiths
Cancelled overprint - diagonally up
1d orange-red roughly perforated 12.5 x 13 stamp on faintly impressed watermarked paper with a diagonally up Cancelled handstamp and circular ring cancel