A distress beacon was activated about 1130am (AWST) after the yacht hit a reef and started sinking, more than 200 kilometres north of Perth.
AMSA tasked the Challenger jet from Fremantle to the scene, along with a RAC rescue helicopter, a private helicopter, a WA Fisheries vessel and Jurien Bay Marine Rescue vessel.
Three people, suffering shock and hypothermia, were rescued by the Fisheries vessel and after a more extensive search, the two other people-a man and his daughter-were located and transferred to hospital via helicopter.
AMSA Response Centre Manager Kevin McEvoy said the successful rescue highlighted the importance of having emergency equipment onboard the vessel.
"When the vessel struck trouble, an Emergency Position Indicating Radio Beacon (EPIRB) strapped to the body of one of the women was activated-and the three adults were rescued within about two-and-a-half hours," Mr McEvoy said.
"It took a further two hours to locate the father and his 11-year-old daughter, who had drifted away from the group.
"We recommend everyone heading out on the water to have a registered distress beacon."
Check the expiry date on your beacon battery to ensure its registered and hasn't expired: www.amsa.gov.au/beacons