The public is being urged to remain calm after the federal government confirmed a "known terror suspect" was shot dead in outer Melbourne last night.
The 18-year-old man stabbed two officers in what is being described as an "unprovoked attack" after being called to attend the Endeavour Hills police station on Tuesday evening to answer questions.
An AFP officer guards the perimeter of Parliament House as the government confirms a man shot dead in Melbourne was a ''known terror suspect''.Credit: Andrew Meares
In a statement to the media in Canberra on Wednesday morning, federal Justice Minister Michael Keenan refused to take any questions but confirmed the teenager was a "known terror suspect" and a "person of interest" to law enforcement and intelligence agencies.
Mr Keenan said it appeared the police officer who shot and killed the suspect did so in self-defence.
Bomb fears: A police officer in a special suit inspects the dead man's car at the scene on Tuesday night. Credit: Getty Images
"Whilst this is a horrible incident we do need to remain calm and go about our daily lives," Mr Keenan said.
"The police are our front line against people who wish to do us harm and it is exactly this type of bravery and dedication shown by these officers that will continue to keep our communities safe and secure".
He said the two officers were from the Australian Federal Police and Victoria Police. The most seriously injured was the AFP officer, who is in a "serious and stable condition" in hospital.
Mr Keenan said he had briefed Prime Minister Tony Abbott, who is travelling to the US to attend a special session of the UN Security Council on the rise of Islamic State (also known and ISIL), and Opposition Leader Bill Shorten.
Investigating: Police at the scene.Credit: Scott Barbour
The Australian government has sent military aircraft and special forces soldiers o the Middle East with the view of deploying the RAAF to participate in US led airstrikes against ISIL militants. Defence says the Air Task Group, comprising 400 Royal Air Force Personnel had arrived in Dubai overnight and Defence Minister David Johnston is also in Iraq and the UAE to discuss the possible Australian involvement in air strikes against IS.
Mr Abbott has ruled out combat troops on the ground but the special forces are likely to play an advisory role alongside the Iraqi Defence Force.
Justice Minister Michael Keenan said the man shot dead by police in Melbourne was a "known terror suspect".Credit: Jonathan Ng
The shooting death of the terror suspect in Melbourne and the stabbing of two police officers comes as the Attorney-General George Brandis prepares to introduce into Parliament on Wednesday legislation to boost the intelligence and policing agencies powers.
The legislation will create new offences, including promoting terrorism and travelling to a zone the Government deems a terrorism hotspot, and will be sent to Parliament's Intelligence Committee to be reviewed.
Acting Australian Federal Police Commissioner Andrew Colvin and the Victorian Police Commissioner Ken Lay are expected to update the public about the incident In Melbourne later on Wednesday.
The shooting occurred in the electorate belonging to Anthony Byrne, the Labor MP for Holt who is also the Deputy Chair of Parliament's Intelligence Committee.
He has thanked the officers for putting their lives on the line to keep the community safe.
Mr Byrne said the "shocking and horrific event" showed the government, with the support of the Opposition had been right to boost security after the decision by ASIO to increase the terror threat level.
"This threat is significant, this threat is real," he told reporters on Wednesday.