Emergency services were called to Notts Ave at Bondi Beach about 10.45am after reports a car had left the road.
Police found a small SUV had gone through a guard rail and flipped on to its roof and on to the ground below.
Police have been told two cars had been involved in a minor accident and as the drivers were exchanging details, one of the vehicles rolled forward.
No one was inside the vehicle at the time and no pedestrians were injured.
Notts Ave is closed, and police are urging people to avoid the area as a recovery operation is co-ordinated.