Police say emergency services were called to Terrace Beach at 2.45pm, after a sand dune the boy - from Wyndham - was digging in collapsed, trapping him.

Paramedics attended and treated the child at the scene before he was transported by road to Pambula Hospital in a critical condition.

The boy died a short time later before he was able to be airlifted to Canberra Hospital.

Inquiries into the incident are continuing and a report will be prepared for the Coroner