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.
She had been linked to a highly experienced instructor when the collision happened.
Mission Beach, located between Cairns and Townsville, is a regular skydiving spot for tourists, with the fatalities the worst in the industry's history for the region.
One of the victims was found by an area resident in a backyard while the two others were found entangled in a nearby tree, The Cairns Post reported.
One shocked onlooker said: "You could see one chute was tangled and it wasn't opening".
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Three people have been killed in a skydiving accident in north Queensland.
At least one of the deceased is a skydiving instructor.
A police spokesman told reporters at Mission Beach that two males employed by Skydive Australia aged 34 and 35 and a local female who was a customer aged 54 were found in two separate locations near Alexander Drive just after 3pm this afternoon.
Skydive Mission Beach has ceased operations for at least two days and all weekend jumps have been cancelled.
They also extended their "deepest sympathies and heartfelt condolences to the individuals and families involved and the broader skydiving community". Police investigators and other agencies remain at the scene.
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