CASA, the ATSB, and Victoria Police are among agencies investigating the incident, with the police at this stage not treating the fall as suspicious.

Speaking to Nine News, a neighbour reported a “loud bang” at the time of the accident.

“I actually only heard the sirens – a lot of them – but my brother heard like a loud bang, almost like … a large item falling on your house. It wasn’t until we heard all the sirens that we came out,” the neighbour said.

In a joint statement, the National Commercial Hot-Air Ballooning Industry and the Australian Ballooning Federation gave their condolences to the man’s friends and loved ones, and said witnesses will be offered counselling.

“Passengers and the pilot are understandably traumatised by this tragedy and the operator is arranging psychological support and counselling for all affected,” they said.

“Hot air balloon baskets are designed with safety in mind, specifically to prevent passengers from falling out accidentally, or from any accidental exit.

“As this matter is now subject to investigations by Victoria Police, WorkSafe Victoria, Air Transport Safety Bureau (ATSB) and the Civil Aviation Safety Authority (CASA), it is not appropriate to comment further.”

Monday’s fatality is at least the second incident involving a hot-air balloon in Melbourne in the past two years, with the ATSB last year concluding that an April 2022 crash, which caused minor injuries to three passengers, was due to a fault with the balloon’s deflation system.

Hot-air ballooning is a popular tourist activity in Melbourne, attracting around 11,000 visitors and locals every year.