Bright white light that changed to red that was viewed at night over the ocean from the beach...Well after a difficult car journey down to Fairhaven late at night. The four of us, three males and one female aged in our early twenties, finally arrive and decide to celebrate down at the beach on the sand..... At about 4:30am a mate starts yelling about a UFO he is seeing that is flashing a light in the night sky....that he has been watching for a minute or so. Then we all saw it....It was right near us out to sea, there were some clouds that probably shaded our view for where it started. It first was a bright white light that was maybe 3-4 kms altitude. It was moving east towards Melbourne. Then changes direction slightly and the white light dims till it is almost out, while moving in a NE to E to NE continually. Now it is quite dim and you could almost not see it. Then the light dims on again but it is red and it is shining. But it wasnt as strong as the white light, but it was further away. If I could speculate as to the shape, it was probably disc or a ball, and probably the size of a small plane..... One thing I dont have to speculate on now is the existance of EBE's as I can safely say, that was no man made craft....