UP to 75 asylum seekers may be dead and 40 others are clinging to the hull of an upturned boat, which has capsized in Indonesian waters.
Up to 200 people were on board the vessel, which was on its way from Sri Lanka to Australia.
Prime Minister Julia Gillard distressed by asylum boat tragedy
The maritime drama began to unfold after 3pm (AEST) today when an Australian Customs and Border Protection surveillance plane spotted a vessel "in distress" 200km north of Christmas Island.
The observers immediately contacted Indonesian authorities, who are leading the rescue effort alongside the Australian Navy, Defence and Customs.
"It is believed up to 200 people could be on board, although this detail has not yet been confirmed," Customs said in a statement.
West Australian Police Commissioner Karl O'Callaghan said about 40 people were spotted on the upturned hull, others were in the water and up to 75 others may be dead.
"We have grave fears for the remainder," he said.
Mr O'Callaghan said it was likely the bodies would be taken to Christmas Island and WA might become responsible for a coronial inquiry.
Mr O'Callaghan told Channel 7 the force had mounted a significant response and a team of search and rescue officers, including specialists in night searches, was being sent to Christmas Island tonight.
"We are also on standby in case we have to do a coronial inquiry and we have a team of disaster victim identification experts," he said.
It would take them more than four hours to reach the island, he said.
WA Health has also been put on alert to ensure hospitals are ready to treat any victims, Perth Now said.
Emergency Service personel
Indonesia's search and rescue authority BASARNAS is coordinating the search with the Australian Maritime Safety Authority (AMSA). AMSA confirmed there are definitely survivors but was unable to give numbers.
The Australian mission involves Defence aircraft equipped with life rafts, a Customs maritime surveillance aircraft, and two Armidale class patrol boats, HMAS Larrakia and Wollongong.
The Australian Maritime Safety Authority (AMSA) is coordinating the following resources in support of the search and rescue operation:
A Customs and Border Protection Dash-8 surveillance aircraft is providing aerial surveillance in assistance to the rescue.
A RAAF maritime patrol aircraft deployed a number of life rafts and is providing on-going aerial surveillance.
It will be replaced by another aircraft later tonight.
Two Armidale class patrol boats, HMAS Larrakia and HMAS Wollongong, have arrived on the scene and have commenced recovery operations on the water.
An AMSA Dornier aircraft, with additional rescue resources and search capability including life rafts, is expected to arrive on scene later tonight.
Three merchant vessels have also responded to a request from AMSA’s Rescue Coordination Centre (RCC) for assistance and are currently in the area supporting recovery efforts.
A number of civilian vessels are also on the way to the area.
BASARNAS spokesman Gagah Prakoso confirmed two Indonesian vessels were also on their way.
"At the moment, we're waiting for them to report back," Mr Prakoso said.
It was still unclear whether the survivors would be taken to Australia or returned to Indonesia.
Mr Prakoso said Australian authorities had confirmed the boat originated in Sri Lanka.
Three other boats, carrying a total of about 240 asylum seekers, have been intercepted near Christmas Island over the past two days.
Home Affairs Minister Jason Clare is being briefed and is expected to make a statement in the morning.
Prime Minister Julia Gillard spoke about the tragedy in a speech at a breakfast function with Indonesian President Dr Yudhoyono about protecting oceans.
"Australia is a place with a very long coastline, but unfortunately a coastline that has its dangers. And today our nation has been reminded of those dangers due to the loss of a boat at sea causing loss of life."
"The ocean can be a beautiful place but sometimes a dangerous place as well."
Earlier today, Immigration Minister Chris Bowen accused the Opposition of courting tragedy by refusing to support the government's bill aimed at resurrecting offshore processing.
"Their destructive negativity means people continue to risk their lives on dangerous boats," he said, just hours before the news of the capsize broke.
Also speaking earlier today, Coalition Immigration spokesman Scott Morrison said the Government had no plan to stop the flow of boats.
"They are globally known as a soft touch on this issue," he said.
The Australian Christian Lobby said today's capsize underscored the need for the government and opposition to find a bipartisan solution.
More than 50 asylum seekers died when a boat known as SIEV 221 crashed against rocks off Christmas Island in December 2010.
The youngest was just three months old.
The disaster was the largest loss of life in Australian waters in peacetime in 115 years.
And as many as 200 people drowned last December when a boat sank off the coast of East Java on its way to Australia.
Just 49 people survived that tragedy, which occurred in rough monsoonal seas on December 17.
So far this year, 57 boats carrying a total of 4006 passengers and 82 crew have arrived in Australia.
For the month of June, there have been 18 boats carrying more than 1100 people. The latest arrived arrived overnight and had 117 people on board.
Timeline of boat disasters
February 2012
At least eight drown after a boat capsizes near Malaysia
December 2011
Up to 200 die when boat heading from Indonesia to Australia sinks
November 2011
Up to 20 killed when boat capsizes off Java, Indonesia
December 2010
Christmas Island boat crash claims 50 lives, including babies and children
November 2010
Boat with 97 people on board goes missing
May 2010
5 Sri Lankans drown off the Cocos Islands
October 2009
Asylum boat with 105 Hazaras on board believed to have vanished between Indonesia and Australia
April 2009
5 Afghan asylum seekers die when their boat explodes
Thursday 20 June 2012
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