The Australian Maritime Safety Authority (AMSA) says 77 people who were thrown out of their boat off Ashmore Island have been rescued.
A customs plane spotted the broken up boat and people in the water and called for help from the Navy.
AMSA spokeswoman Jo Meehan says the navy crew are confident they have rescued everyone who was on board.
"The crew on board HMAS Childers have conducted interviews with all those survivors to ensure no-one is missing any relatives," she said.
Ms Meehan says it is not clear what happened to cause damage to the boat and there have been no reports of injuries or requests for medical attention.
It is estimated the group could have been in the water for an hour before being rescued.
They will now be taken to Christmas Island.