The year six Pacific Palms Public School student is being hailed a hero after he set out in his tinny to save several people who had been thrown into the water by their boat.

He had been celebrating his 12th birthday with friends with a day on the water when things turned sour.

"I was just about to go and put my boat in the trailer and I heard the roaring of a motor, so I went over. Four people were in the boat and someone dropped their hat, so they turned around and it was too sharp so they all fell out. The boat just kept going in circles over the top of them so I went out and got one of the ladies," he said.

Disregarding the danger to himself, Nick managed to assist two of the women until further help arrived.

"Someone else came over and helped me pull them out of the water; they took the people back to shore, came back out and managed to turn off the boat."

The accident occurred at about 4pm on Saturday, when the group was returning home after a trip to Pacific Palms. When one of the occupants of the boat had their hat blown off by the wind, the boat driver attempted to turn around. As he did the boat tipped and the occupants were thrown into the water. The boat continued in full lock in a figure eight in close proximity to the people in the water.

Nick said that he did consider the danger, and that at times the speed of the boat was quite frightening.

"A few times I was scared when the boat came for me. I just kept letting the women hold onto the side of the boat and I reversed out of the way."

Nick's efforts prevented the women from experiencing harm, but both men sustained some injuries.

"The owner of the boat got a two centimetre gash to the head from the propeller and broke his leg and the other man had the boat go over the top of him three times and it clipped his ear," Nick said.

Police confirmed the owner of the boat sustained a fracture to the left femur and was airlifted to John Hunter Hospital.

Nick's mother, Sue Shorter, says she couldn't be more proud of the way her son responded.

"I feel very proud. I was quite surprised that he thought so quickly and just jumped in without thinking of the danger to himself. I was just so proud of how he responded to the situation, it was great."

"He has just turned 12 and young boys don't always think about decisions. I was just so proud that he entered the dangerous situation himself," Ms Shorter said.

"His mum and dad are very proud of him and his Nana is just bursting with pride," she said.

Nick too is pleased with his actions.

"Yeah, I was proud. Everyone was thanking me. I was just happy they were out of the water," he said.

When asked if Nicholas will pursue a career in water rescue, he laughed.

"Probably."