A MOTHER and her baby escaped with their lives after jumping from a burning boat at Atkinson's Dam on Wednesday morning.
A new year holiday at the Atkinson Dam Waterfront Caravan Park ended in a miraculous escape.
The 33-year-old mother and her 13-month-old daughter were on a boat on the dam, north-east of Gatton, just after 7am.
It is believed the fire started when seaweed was sucked into the boat's jet causing it to overheat, but the cause is still being investigated.
The mother jumped into the water clinging to her daughter as flames consumed the vessel.
The mother was treated for shock and minor burns and her 13-month-old daughter escaped unharmed when the fire engulfed their 3m boat.
Witnesses reported the woman's husband watching from the shoreline as flames and smoke billowed from the boat.
He called for help and a man rushed into the water on a jet ski, pulling the pair to safety.
They were transported to Ipswich Hospital for treatment.
The family are regular campers at the site.
The smouldering wreckage remained on the water until it was towed by park rangers for investigation.
Police held fears the wreckage may explode as it continued to smoulder hours later.
Karana Downs Senior Constable Leanne Curtis said the mother and daughter were only in the water briefly.
"She was in shock. It happened pretty quickly and the jet skier noticed the boat was on fire," she said.
She was struggling to hold the baby up but then they were brought back into shore.
"She was struggling to hold the baby up but then they were brought back into shore."
Gold Coast resident Troy Lawlor said thick black smoke was emanating from the wreckage of the boat.
"The mother was just in shock," he said.
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