A woman has died after a "tragic event" during an Australia Day lamington eating competition at a Queensland pub.

Paramedics were called to the Beach House Hotel at Scarness, in Hervey Bay, about 1.10pm on Sunday after a reported medical incident.

A Facebook post from Top of the Bay Bakery said the business had teamed up with the hotel for the annual lamington and pie eating competition.

Witness Della Firth took to the social media platform after the incident, saying she saw the woman taking part in the competition after speaking with her earlier in the day.