Initial NSW Police investigations suggest the parachutes of Alana Clarke, 29, and champion skydiver Michael Vaughan became entangled during a jump on Friday afternoon.

The pair plummeted heavily to the ground in an area off the Pacific Highway at Tyagarah, north of Byron Bay, about 3.30pm.

Both were treated by paramedics at the site but Ms Clarke died at the scene.

Mr Vaughan, aged in his 40s, was airlifted to Gold Coast University Hospital with serious injuries.

He underwent surgery and remains in a critical condition.

Ms Clarke, a seasoned skydiver, had recently relocated from Melbourne to Byron Bay where she had started a baby sitting business.

In a touching tribute posted on Facebook on Saturday, her father John wrote: "Our beautiful Alana. Embracing life to the fullest. You went doing what you loved."

Ms Clarke moved to the Byron Bay area in 2012, having carved out a successful career in childcare over the previous decade.

As a 19-year-old, she discovered her "affinity with children" working as both a crèche assistant and children's ski instructor. She later went on to provide childcare services for more than 100 families across Melbourne. On the back of that experience, she set up her own business, last year, called Byron Bay Babysitting.

Less than 24 hours before the tragedy, Mr Vaughan had uploaded a picture on Facebook of Ms Clarke, himself and several skydiving students whom he had been hosting as part of a week-long training course.

Mr Vaughan is a leading instructor who has made more than 10,000 jumps and featured in skydiving safety campaigns.

The pair were jumping on the final afternoon of a week-long Skydive Byron Bay canopy and landing course being coached by Mr Vaughan.

Mr Vaughan had earlier posted on Facebook that he was looking forward to seeing everyone taking part in the course.

Friends and family of Mr Vaughan flooded his Facebook page with well wishes and hopes for his recovery.

"Michael never never never give up. Fight and win. Sending all the love I can to you, Kate and your family," fellow skydiver Steve Hogden posted.

As word spread of the tragic accident, messages poured in from around the world:

"Michael, buddy, you have as much will and determination as anyone I have ever known. And you are loved by thousands around the world who are interceding for you now while you are down and out. I am believing and expecting you to pull through. Go Michael! You can do this!!" Shannon Pilcher form Florida posted.

In the latest update, friends were advised that Mr Vaughan had survived "multiple simultaneous surgeries", having sustained "many internal injuries" that were life threatening.

Police are continuing their investigations and a report will be prepared for the coroner.

With Eamonn Duff and Luke Malpass