The light plane crash landed in thick bush near to Moruya Airport on NSW's South Coast on Saturday afternoon with Mr Smith the only remaining occupant of the aircraft.
The 54-year-old pilot and skydiving instructor died at the scene.
"He was a very well-respected, very experienced, and very well-liked local resident," Detective Inspector Justin Marks told reporters on Sunday.
"The death or sudden death of anyone in a small community is very tragic."
Police are preparing a report for the coroner.
The crash happened roughly two minutes after the sky divers exited the plane at roughly at 14,000 feet to start their descent.
All eight landed safely within the airport grounds.
Australian Transport Safety Bureau chief commissioner Angus Mitchell said investigators were yet to speak to the skydivers but other witnesses had observed "unusual sounds and flight pattern" shortly before the accident.
Investigators were also seeking information on weather and conditions from the Bureau of Meteorology.
Mr Mitchell said the plane, built around 1980, was subject to a "fairly substantive maintenance check" prior to being brought into Australia about six weeks earlier, and had done a number of flights before the incident.
He said the investigation was still in its early stages and a preliminary report could be expected within eight weeks.
Mr Smith had more than 20 years flying experience and piloted more that 20,000 supervised parachuting jumps.
He was awarded the Australian Parachute Federation's highest honour last year - the master of sport parachuting - for his achievements and contributions to the sport.
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