She had been linked to a highly experienced instructor when the collision happened.
Mission Beach is a popular skydiving destination in Queensland, lying just south of the city of Cairns.
It is believed her husband Alister, a former local councillor, and children had gifted the skydive as a 50th birthday present.
One eyewitness told the Cairns Post: 'You could see one chute was tangled and it wasn't opening.
The other two bodies were found in a tree nearby.
Police and paramedics were called to Mission Beach, Queensland at today - where two men in their thirties and a woman in her fifties were found dead.
The jumpers were not immediately named, but police said the dead men were instructors at Skydive Australia.
The area is a popular spot for skydivers and this is the worst incident in history for the area.
Skydiving activities have been temporarily suspended and the Australian Parachute Federation is reportedly sending representatives north from Brisbane to investigate.
The others, another instructor and a customer, were jumping as a tandem pair, said the company organising the jump, Skydiving Australia, in a statement.
They also extended their "deepest sympathies and heartfelt condolences to the individuals and families involved and the broader skydiving community".
There are a number of skydiving companies operating in Mission Beach.
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