Rescuers were attempting to reach a yacht with two people onboard in rough seas off the New South Wales south coast on Tuesday morning.
The Australian Maritime Safety Authority said it had received a distress beacon alert about midday on Monday from a vessel 185km east of Nowra. Media reports named the stricken 19-metre yacht as the Spirit of Mateship.
The authority said it was dealing with up to five-metre seas and 70km/h to 90km/h winds.
Emergency authorities on Monday said a rescue was likely to be attempted at first light on Tuesday if weather conditions allowed. A water police vessel was making its way to the scene.
Two Royal Australian Navy ships and an RAAF C-130J Hercules aircraft were also involved in the rescue operation.
Police had earlier said the yacht “is believed to have sustained a mechanical issue and is taking on water”.
Three helicopters had flown out to the yacht and made contact with the two crew members but could not take them back due to fuel considerations, the Australian Maritime Safety Authority said.