Heart-stopping footage released Thursday by Australian authorities showed the moment a skydiver was left dangling thousands of metres in the air after their parachute caught on the plane's tail.

The skydiver survived the incident, which occurred south of Cairns during a stunt in September but has only just been revealed following investigations by the transport safety watchdog.

Plans for a 16-way formation by parachutists at 15,000 feet (4,600 metres), filmed by a parachuting camera operator, hit chaos within seconds of the first participant reaching the plane's exit.

A video released by the Australian Transport Safety Bureau showed the participant's reserve parachute being activated after its handle snagged the wing flap of the plane.

The jumper was flung backwards -- their legs striking the aircraft -- as the orange reserve parachute wrapped itself around the plane's tail.

The parachuter also knocked the camera operator, who was straddling the side of the aircraft and preparing to jump, into freefall, the bureau said in a report that did not include names, ages, or genders.

The jumper was seen placing their hands on their helmet for a few seconds, as if in shock.

While dangling over the terrifying drop, the jumper cut the strings of the reserve chute with a hook knife and freed themself, the bureau said.

The parachuter then deployed their main chute and landed safely on the ground.

"Carrying a hook knife -- although it is not a regulatory requirement -- could be lifesaving in the event of a premature reserve parachute deployment," said the bureau's chief commissioner Angus Mitchell.

The aircraft's tail was "substantially damaged" by the incident and the pilot had limited control of the plane, issuing a mayday distress call, but managed to safely land the plane.