"The 11-year-old daughter of the deceased lady, the mother, was on the bus with other school children," police duty officer Darren Jameson told Macquarie Radio on Thursday.
"Fortunately, she didn't see the incident but she was on the bus.
"It's a tragic day, not only for the family but for the witnesses and the bystanders."
Police have interviewed the 69-year-old bus driver, who was taken to hospital for mandatory blood and urine tests.
The students are undergoing counselling.
The bus has been seized for forensic examinations.
Crash investigators have renewed their appeal for witnesses to come forward.
-AAP