The report quoted police as saying that about "a large number" perhaps even 75 people could have died.
An Australian cargo ship and a military vessel were at the scene helping in rescue people.
Afghan and Sri Lanka refugees have been risking their lives in rickety boats to seek asylum in Australia.
Several boats have capsized, killing many refugees.
Australia, a country of immigrants has tightened immigration barriers in recent years and followed a controversial policy of detaining refugees.
