Queensland Police said the two men were aged in their 30s and the woman in her 50s.
It's not known at this point what led to the accident, but the police were alerted when the body of a skydiver was found in the back garden of a home near Mission Beach.
The solo skydiver was a "highly experienced instructor who had completed thousands of jumps", while the other two were a customer and another experienced instructor, it said in a statement.
Skydive Mission Beach has ceased operations for at least two days and all weekend jumps have been cancelled.
In the tiny community of Mission Beach, Queensland, parachuting is a popular activity for tourists looking for an exciting way to enjoy the lovely scenery.
An eyewitness was quoted as saying: "You could see one chute was tangled and it wasn't opening".
'It wasn't good to watch.
"Three people have died after sustaining injuries from a skydiving accident in Far North Queensland". I had my heart in my mouth'. The area is popular with tourists and especially backpackers.
Brad Turner from the Australian Parachuting Federation said an investigator from the organisation was already in Mission beach assisting with investigations. This media house does not correct any spelling or grammatical error within press releases and commentaries.