Two children â€“ a 9-year-old boy and a 13-year-old girl â€“ were trapped in a carriage at the top of the wheel near the wrecked plane for 90 minutes, police said.
A spokesman for New South Wales Rural Fire Service said rescuers used a crane to free the four.
He said: “Thankfully, everyone was taken down and were able to walk away from it.”
The pilot, 53, and his passenger, 32, were retrieved by crews using a crane, as were a boy, 9, and girl, 13.
The children were trapped on the ride for more than an hour, police said. The two men had to wait a little longer.
The pilot, Paul Cox, said he did not see the Ferris wheel before his plane hit it.
“The next thing I knew, I was stopped inside the Ferris wheel,’ he said. ‘I had no idea for a few minutes and I was just hoping no one got hurt.”
‘The kids were fantastic,’ said Brett Campbell, a paramedic at the scene. ‘They were so calm and so well-behaved and very brave.
‘And so were the two gentlemen in the plane. They were just the best patients we could ever hope for, and the best thing about it, no one really had any injuries.’
There was speculation there was not enough room for an aircraft to avoid hitting the ferris wheel after take-off. Sydneyman Darren Boehn was at the fair and told The Sunday Telegraph the plane clipped the ride shortly after take-off.
“The ferris wheel is pretty close to the end of the runway and it’s clipped it after take-off,” Mr Boehn said.
“It is amazing no one was killed — if those kids had been in a different carriage, or if the plane had struck from the other side, it would have been a disaster.”
Local resident Gary Jones said his nine-year-old twin sons were among the last to ride the Ferris wheel before the crash. He told reporters: “It was a hell of a shock.”