She had been doing a tandem dive with one of the instructors.
The tragedy unfolded shortly after 3 p.m. over Mission Beach in Queensland when a solo skydiver is believed to have collided with tandem skydivers with their parachutes failing to deploy correctly, cops said.
An unnamed eyewitness told the Cairns Post that he saw one of the skydivers falling.
A witness said: 'You could see one chute was tangled and it wasn't opening.
Three skydivers have died in a horrific mid-air collision on Australia's Queensland coast.
Police said initial investigations indicated a solo skydiver collided with a tandem skydiving pair over Mission Beach, about 110 kilometres south-east of Cairns, just after 3pm on Friday.
Skydiving activities have been temporarily suspended and the Australian Parachute Federation is reportedly sending representatives north from Brisbane to investigate.
Skydiving is an attraction for adventure-minded tourists in the area, along with whitewater rafting on the Tully River, he added.
One of the victims landed in the front garden of a house and the two others were found entangled in a nearby tree on a banana farm. I had my heart in my mouth'.
The company extended "its deepest sympathies and heartfelt condolences to the individuals and families involved and the broader skydiving community". I could understand two, maybe, but not three. Police investigators and other agencies remain at the scene.