Kerri Pike, 50, was named as one of the victims who fell to their deaths after they collided with another instructor on Mission Beach, near Cairns.
It is the site of Australia's highest commercially available tandem dives, taking place from around 15,000 feet.
Mission Beach is a popular skydiving destination in Queensland, lying just south of the city of Cairns.
An eyewitness told The Cairns Post that he could see that one chute was tangled and it wasn't opening.
Three skydivers have died in a horrific mid-air collision on Australia's Queensland coast.
The dead are two men, believed to be instructors, and a woman.
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There are reports that three people have died after a skydiving accident near a beach in Brisbane.
A third victim, a highly experienced tandem jumper who had completed thousands of successful jumps, was found dead at a nearby property after skydiving solo.
"The other two were jumping as a tandem pair: a highly experienced instructor and a customer".
The company operating the dives, Skydive Australia, released a statement on Friday offering its "deepest sympathies and heartfelt condolences" to the families of the deceased and to the local skydiving community.
Brad Turner from the Australian Parachuting Federation said an investigator from the organisation was already in Mission beach assisting with investigations.