The search for potential survivors has been called off after three men, including two rescuers, died and four others were rescued when a rescue boat flipped while trying to assist a struggling yacht on the NSW North Coast.

A distress call went out about 6pm on Monday after a yacht ran aground at the breakwall in South Ballina.

Police said three people, including a pair of rescuers, had died, and four others had been rescued.

Two Ballina Marine Rescue volunteers confirmed among dead in bar tragedy (7News)

Superintendent Joseph McNulty said the Marine Rescue volunteers who died were heroes. Picture: NewsWire / Nikki Short
Speaking to reporters on Tuesday morning, NSW Police Marine Area Command Superintendent Joe McNulty said a group of six Marine Rescue volunteers received a call from a local who saw the yacht taking on water.

Superintendent McNulty said the volunteers had set out on a “fit for purpose” Ballina 30 rescue vessel, which he said was “specifically designed within NSW for our conditions”.

“It is a very well-built locally procured vessel. They undertake a lot of training in doing bar crossings,” he said.

Superintendent McNulty said the crew left the Ballina breakwall in “very severe conditions”, which meant they were “punching into a 2.5me swell coming in from the east coast”.

“It heightened the wave height at the Ballina bar, creating a wave that was difficult to navigate. That vessel capsized, and as a result of that capsize, some of the Marine Rescue crew were trapped in the hull, some were ejected from the vessel and unfortunately two lives have been lost,” he said.

Two Ballina Marine Rescue volunteers confirmed among dead in bar tragedy (7News)
Superintendent McNulty said the two volunteers who died were a 78-year-old from the Ballina region and a 62-year-old.

“Today is about remembering the lives of two brave crew members that lost their lives last night responding to a vessel in distress,” he said.

“These men are heroes. They volunteered their lives to save others.”

The body of a third man, believed to be the yacht’s operator, was recovered from the water by police on Monday night.

Superintendent McNulty said the man, who was described as being in his mid-50s, had not been wearing a lifejacket when he was recovered, and at no point had his vessel made any distress calls or activated its built-in emergency position indicating radio beacon, both of which are mandatory on all seafaring vessels in NSW.

Two of the three people killed in a marine tragedy off the northern NSW coast were rescuers whose boat flipped on the way to help a stricken yacht. Picture: 9 News
“At this stage, NSW police – like any other incident – will conduct an investigation. That investigation is in its infancy, there are a lot of sensitivities involved,” he said.

“The seas are quite difficult at the moment … our dive team will consider diving that area later in the week to recover critical evidence (and) to find out more about the yacht and how it arrived at that location.”

That man is the only known occupant of the yacht, and no other people have been located.

The four rescued were treated for non-life-threatening injuries.

Police said they were yet to confirm how many people were on the yacht.

“It’s believed the yacht has now sunk,” police said.

Witnesses said conditions were dark and there was a large 5m swell in the water at the time of the boating tragedy, making it difficult for rescue crews to assist.

Meanwhile, Minister for Emergency Services Jihad Dib paid his respects to “the two brave Marine Rescue NSW crew members”.

“Our emergency services are the first to rush to the rescue of people in danger and last night two of our courageous volunteers made the ultimate sacrifice,” he said on Tuesday.

“Along with four of their crew mates, the volunteers were heading to the aid of a yacht in distress when their Marine Rescue NSW vessel capsized.

“In difficult and dark conditions, additional emergency services then raced to their assistance.

“Sadly, the mariner on board the yacht has also lost their life, and we offer our condolences to their family.”

Mr Dib added it is a “very difficult and heartbreaking time for such a tight knit community”