UPDATE: Six Korean tourists had to be rescued from the ocean at Mudjimba after the hire boat they were in capsized on Sunday.
Locals say the inexperienced boaties were flung into the water after the boat rolled inside the break on the Sunshine Coast beach.
Ambulance officers and lifeguards rushed to the scene.
The Daily's photographer Patrick Woods was also at the scene.
A group of six people were in the boat when it capsized.
"There's a group of people huddled around, from what I can tell they know each other. Some of them are soaked wet," he said.
"I think they're all in a state of shock really.
"The tide's coming in and the boat's grounded in the breakers, in half a metre of water with incoming tide."
Twin Waters lifeguard James Waters said the boat had rolled over about 9am.
"A boat had rolled over inside the break at Mudjimba and six people were in the water but had been retrieved with no injuries," he said.
When he arrived at the scene he notice a large boat, about 7m long, on its side, about 15m off the beach.
"There were six people retrieving their belongings from the water's edge," he said.
The occupants were tourists who had hired a boat, setting off just an hour before from Mooloolaba, he said.
All people on board have been accounted for, he said, and while an ambulance was called to treat one person who had swallowed water and was suffering from shock, all six occupants are safe and had suffered no injuries.
It was very strange, Mr Waters agreed, to find a boat of this size capsized so close to land. He put it down to inexperience.
"I think they had just come in too close to shore and been caught by a couple of larger waves," Mr Waters said.
"A couple of set waves came through and hit the vessel while it was side-on, and flipped it.
"I think they were inexperienced tourists.
"The boat was a hire boat and they were planning a day trip, but the boat only left Mooloolaba an hour before the incident.
"They were planning to get out to the island (Old Woman Island) but had come in shore."
The boat's occupants had been in shock but were "fairly thankful that they got in without injury", Mr Waters said.
"It's definitely not a common occurrence. A boat of that size, we don't usually see boats of any significance coming in close to the beach.
"It's pretty big lump of a boat to be coming in that close to the shore."
Mr Waters said the incident was a powerful reminder for boat owners to always check conditions.
"Near the surf beaches please stay out wide, away from any kind of significant action," he said. "It's better to be safe than sorry."