Jessica, has been in a coma since boxing day after a freak auto accident took the lives of her parents Lars, 69, and Vivian, 60 and her younger sister, Annabelle, 21. Jessica was sent to St George's Hospital, where she has undergone multiple surgeries including having part of her skull and her kidney removed.
The hospital on Friday confirmed Jessica's life support had been switched off, saying it will provide the next update on Jessica's condition at midday and again at 4.30pm.
Her sister Annabelle, 21, was also injured and died in hospital on December 29.
The 29-year-old's life support was switched-off on Thursday night, following the tragic accident that killed her father Lars, mother Vivian and sister Annabelle.
"Rest in peace, lovely Jessica Falkholt", it said.
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Jessica and her sister were pulled from the wreckage after their auto collided with Whitall's 4WD near Ulladulla on December 26.
Home and Away has paid tribute to the late actress, who played the character Hope Morrison on the soap in 2016.
It has been revealed Craig - who also died in the fiery collision - had served four jail sentences for traffic offences, was banned for driving for nine years and had at least 10 convictions for driving while disqualified, The Daily Telegraph reported.
During the service, Jessica's uncle Paul Ponticello tearfully told mourners their family will forever be haunted by Christmas - the last time they were all together. "We take little comfort in knowing that they are together and always will be".
Commenting on the tragedy, a Twitter user lamented: "So sad to hear about Jessica Falkholt, who was Hope in Home And Away, and her family's fatal vehicle accident". I will always miss you.
Jessica has starred in the Australian film Harmony, which is set for release in early 2018.