Kerri Pike, the wife of former Cassowary Coast Councillor Alister Pike, was killed while taking part in a tandem skydive at Mission Beach in far north Queensland on Friday.
Three people have died in a skydiving accident at Mission Beach, south of Cairns.
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.
The area's local mayor, John Kremastos, told the ABC that the incident was "horrible news", saying: "Three people in one accident is very, very sad".
"I was just watching him in free fall until he went behind the trees, and that was the last I saw", he said.
"They assessed three patients for critical injuries".
Police will compile a report for the coroner with the investigation to be assisted by CASA and the Australian Parachute Federation.
There are believed to be two companies offering skydiving activities in Mission Beach, which is a 14km stretch of sand with four villages based along it.
According to skydiving company, SKYDIVE Australia, the solo diver was an experienced instructor who had completed thousands of jumps and Pike, who the company did not list by name, was jumping with a "highly experienced instructor".