The Australian Maritime Safety Authority's (AMSA) Rescue Coordination Centre Australia (RCC Australia) coordinated the rescue of the pair who were en route to New Zealand.
AMSA Emergency Response Division General Manager John Young said RCC Australia was alerted by NSW Water Police on Sunday morning about 11.15am (AEST) the yacht was sinking approximately 385 nautical miles east off Eden on the NSW coast.
'The pair had contacted police via satellite phone,' Mr Young said.
'The vessel was not equipped with a distress beacon, which in these situations can sometimes mean the difference between life and death.'
RCC Australia tasked AMSA's search and rescue Dornier plane out of Essendon in Victoria and located the yacht just before 3.30pm, dropping a light stores container, including survival equipment, strobe lights and an emergency position indicator radio beacon .
A merchant ship responded to a shipping broadcast issued by RCC Australia to vessels in the area and HMAS Perth, which was in the area conducting an exercise assisted in the rescue, along with a Navy Seahawk helicopter based at Nowra.
'The merchant ship was prevented from rescuing them on arrival at 6.25pm because of heavy seas and strong winds but was able to locate them as they were using strobe lights dropped by the Dornier,' Mr Young said.
The Navy helicopter winched the pair to safety from their inflatable tender in darkness about 8.30pm on Sunday.
'It was extremely lucky the Navy was conducting exercises as part of the International Fleet Review near Jervis Bay, allowing the helicopter to use HMAS Perth as a temporary base to reach the rescue scene a long way offshore and back,' Mr Young said.
'We strongly encourage recreational boaters and sailors to carry a GPS encoded distress beacon if they plan on travelling further than two nautical miles from shore.'
As summer approaches AMSA urges people to ensure they have their beacon registered online and their details up to date.
AMSA thanks the Royal Australian Navy and the merchant ship for their vital assistance.