RANGERS from the Queensland Parks and Wildlife Service are monitoring erosion which happened on Tuesday morning near the barge landing at Inskip Point.
According to a statement from the department, the incident was better described as a near-shore landslide than a sinkhole.
The activity started appearing at the surface of the sand about 8am and ended at 10.15am.
No one was nearby when the incident happened.
A spokesperson from the Queensland Parks and Wildlife Service said it had not affected any campsites ans was not affecting access to the barge to Fraser Island.
"It's likely that this was another occurrence of the natural phenomenon which happened in September 2015 at Inskip," the spokesperson said.
"It is caused by the undermining of past of the shoreline by tidal flow, waves and currents.
"When this occurs below the waterline, the shoreline loses support and a section slides seaward leaving a whole, the edges of which retrogress back towards the shore.
"In technical terms such an event is better termed a near-shore landslide than a sinkhole."
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