A sinkhole filled with swirling water has opened up in the backyard of a home in Ipswich, west of Brisbane, ABC news reports

A neighbour alerted Lynn and Ray McKay after noticing the hole opening up on their Basin Pocket property.

The hole has since increased to about 8 metres in diameter.

Queensland Utilities were called, in the belief that a water pipe had burst, however the McKays were told there were no related pipes in the area.

Mayor Paul Pisasale said the Department of Mines had been alerted.

"We've identified the fact that there's a shaft put in here many many years ago," he said.

"No-one knows what has happened but we will know in the next couple of days."

He said the McKays, who have lived at the house in Coal Street for 25 years, were also victims of the 2011 floods.

"I can assure Ray and Lynn they won't be alone," he said.