UPDATED 2.25PM: Police have confirmed the plane that crashed into Lake Taupo this afternoon was a skydiving plane from Skydive Taupo.

The aircraft encountered an emergency situation during the climb to altitude and as a result all of those on board, including the pilot, exited the aircraft by parachute.

The plane under the water. Photo: Stuff.

"There were 13 people on board made up of the pilot, six crew and six passengers," says Bay of Plenty Police communications manager Kim Perks.

"The six crew were due to tandem skydive with the six passengers and they evacuated the aircraft in tandem."

All 13 landed safely on the shore and were checked over by ambulance staff.

Victim Support has been notified and Skydive Taupo is also providing support to all of those involved.

The Transport Accident Investigation Commission has opened an inquiry into the accident.

Taupo harbourmaster Philip King says the plane sank in 3.5m of water.

He says it was a pink skydiving aircraft.

Earlier:

The 13 people onboard a light aircraft which crashed into Lake Taupo around lunchtime are all safe and well.

Police received reports of the crash at Rotongaio Bay around 200m from the shore at about 12.15pm.

Bay of Plenty Police communications manager Kim Perks says all those on board are now on shore and are being checked out by St John Paramedics.

'It's believed there are no injuries at this stage,” she says.

'CAA has been notified and police will assist as required with any air investigation.”

Earlier:

Emergency services are responding to reports of a plane crash in Lake Taupo.

However, reports coming in to SunLive suggest that everybody on board the aircraft is okay.

A police spokesperson has confirmed that the XL750 operated by Freefall Taupo went into Rotongaio Bay around 200m from the shore.

A helicopter is at the scene along with a number of ambulances, and Northern Fire Communications have confirmed that everyone on board - believed to be 13 people - is safe.