A shooting incident on Bondi Beach in Australia has been declared a terrorist incident as 12 people have been confirmed dead.

During a police press conference, New South Wales Police said the incident was now being treated as a terror event, which targeted the Jewish community.

New South Wales police commissioner Mal Lanyon said: "Tonight at 9.36pm, this evening, I declared this to be a terrorist incident. I have also authorised special powers under section five and section six to ensure that if there is a third offender and we are currently investigating that at the moment, we will make sure that we prevent any further activity."

Witnesses reportedly heard people screaming 'Allahu Akbar' as the horror shooting unfolded.

A total of 29 people have been taken to hospital, including two police officers and at least one child.

A senior law enforcement official has confirmed that one of the Bondi Beach gunmen was Naveed Akram from Bonnyrigg in Sydney's south-west.

The official, speaking on condition of anonymity, said Akram's home in Bonnyrigg is currently being raided by police, ABC News Australia reported.

Prime Minister Anthony Albanese said at a press conference: "This afternoon there has been a devastating terrorist incident at Bondi at the Hanukkah by the Sea celebration," he says.

"This is a targeted attack on Jewish Australians on the first day of Hanukkah – which should be a day of joy, a celebration of faith.

"An act of evil antisemitism, terrorism, that has struck the heart of our nation.

"An attack on Jewish Australians is an attack on every Australian."

Footage seen earlier apparently from the Bondi Beach shooting incident in Australia showed the moment a hero bystander wrestled a gun off one of the attackers.

The bystander, wearing a white shirt, is seen crouching behind a car, as the gunman fires off shots just meters in front of him.

In between his shots, the hero rushes through the parked cars and grabs the shooter in a headlock. They wrestle for a moment before the bystander managers to pull the gun from him.

As the bystander points the weapon at the shooter, the man is seen walking away towards his alleged accomplice, who is still firing shots nearby.