The incident was reported at 12.15pm on Saturday and the Westpac Surf Life Saving helicopter was deployed along with ambulance officers and surf life savers.

A NSW Police spokesman said the boat had been found close to the shoreline near Tranquility Bay and all people on board were accounted for.

Far South Coast Life Saving chief executive Andrew Edmunds said the two people swam to safety and were observed by authorities at the beach.

Mr Edmunds said lifesavers from the Batemans Bay Life Saving Club had responded and would assist in efforts to retrieve the boat on Saturday afternoon.

- with Bay Post