The 26-year-old, the son of former Formula One driver Guy Edwards, died when the Porsche in which he was a passenger instructing a 20-year-old male, slammed into a wall and caught fire.
Monaco-based Edwards, who was leading the drivers' championship in the 2013 Porsche Supercup season with one race to go, was taking part in a coaching day at the time, according to Australian news reports.
The driver reportedly suffered severe injuries.
Edwards had a small role in the recently-released movie Rush, playing his father Guy who helped pull Niki Lauda from his burning Ferrari after a crash at a F1 Grand Prix at the Nurburgring in 1976.
Reacting to the news of Edwards' death, former McLaren driver David Coulthard took to Twitter.
"Shocking news about Sean Edwards passing, top man and super talented racer, condolences to his nearest and dearest," he said.
Karun Chandhok, a former F1 driver, added on Twitter: "RIP Sean Edwards... Sadly highlights the dangers that instructors put themselves in while helping other drivers."