A 'near-shore landslide' has opened up a large sinkhole that's eating one of the iconic beaches on Australia's World Heritage-listed K’gari Island, formerly known as Fraser Island.

Footage shared by Queensland's Department of Environment shows the ocean lapping at the diminished tip of Inskip Point.

Authorities say 'near-shore landslides' are common occurrence at K'gari's Inskip Point – and the site has been closed to campers due to safety concerns.

However, the beach remains open to daytime visitors as it's the launch point for trucks and travel into the UNESCO World Heritage Site.

A four-wheel-drive vehicle is essential to navigating the sandy island as it lacks paved roads. It's also a 40-minute barge ride away from Hervey Bay, the nearest costal city.

The site has long been popular with tourists and offers camping, cabin and resort-style accommodations along with a variety of adventure, guided and self-drive tours.