The man died on a beach on the northern coast of the state after he was pulled from the crack.
A 36-year-old man sailed with a group in Brunswick Heads, about 100 meters south of the surf club on Thursday morning when he started battling in blows.
Two surfers pull the men out of the water and launch the CPR, as rescue services were called on, a spokesman for the NSW police said.
Despite the efforts of surfers, lifeguards, medical staff and police, one could not revive. He died in place.
A message will be prepared for the coroner.