HOW IT UNFOLDED

WOMAN calls 000 at 4.11pm stating there’s a hostage situation and a dead man

POLICE arrive at Bay St, Brighton apartment and locate body of man in foyer, appears fatally shot

MAN exits serviced apartment building and opens fire at police. He is shot dead by police shortly before 6pm

IS claim responsibility, as police probe whether gunman was trying to lure officers into ambush

LATEST: UP to 22 prisoners and people on parole in Victoria are undergoing an Islamic anti-radicalisation program.

The revelation comes as Premier Daniel Andrews faced a barrage of questions in State Parliament this afternoon over why Yacqub Khayre was on parole at the time of the Brighton terror attack.

Yacqub Khayre, 29, cut off a parole ankle bracelet before he shot dead an apartment worker and took an escort hostage in Brighton last night.

Bay St, which has been closed since the siege, reopened to driver’s about 3.30pm Tuesday.

Edward O’Donohue, the opposition corrections spokesman, said:

“Daniel Andrews doesn’t have answers on why Yacqub Khayre was on parole and he doesn’t have any answers on how many of these 22 people with potential terrorist links are walking the streets on parole.”

“This Premier really has no idea of what’s going on and if he has no idea of what’s going on, he certainly can’t fix the crime problem.”

In upper house question time this afternoon, Victorian Corrections Minister Gayle Tierney was asked how many prisoners in the state’s correction system had known terrorist links.

“What I can advise is that in the last State Budget there was an allocation of $6.385 million over four years for anti-radicalisation programs and I can advise the House that the Islamic Council of Victoria is contracted to deliver the program and is currently working with up to 22 prisoners and people in the community each year,” Ms Tierney said in parliament.

media_camera Police remove a car believed to belong to Yacqub Khayre. Picture: Alex Coppel.

media_camera A second body is removed from the scene. Picture: Nicole Garmston

media_camera A police cordon at the scene of a shootout. Picture: Mal Fairclough.

When asked how many of these people were on parole, Ms Tierney said: “The advice that I’m provided is that there is up to 22 people in the corrections system.”

Earlier Opposition Leader Matthew Guy ran through the long list of crimes Khayre had committed before being “let out on the streets”.

Police have reopened Bay St after yesterday's siege @9NewsMelb pic.twitter.com/M2Sb1Oo9AK — Kieran Jones (@kieranjones_9) June 6, 2017

State Parliament erupted as MPs on both sides of the chamber hurled insults at each other.

The opposition’s questions echo Prime Minister Malcolm Turnbull, who earlier questioned why the man behind yesterday’s deadly Brighton siege was on parole.

Mr Andrews defended his government’s record on tackling crime and dealing with problems with parole, and said he would “counsel those opposite” that nothing would be gained by playing politics with the issue of terror.

He then accused the opposition of failing to support police, which led to howls of denial from coalition MPs.

Parliamentary secretary @TimSmithMP 's media release re "stupid question" comment form Labor MP re Brighton terror #springst pic.twitter.com/0aWxdHu7Lf — Matt Johnston (@Media_Matt) June 6, 2017

This is getting willing - Guy incredibly saying the premier should "resign" #springst — Matt Johnston (@Media_Matt) June 6, 2017

Mr Guy slammed Mr Andrews over parole and for being soft on crime.

Asked at a media conference earlier today if he was concerned by the fact the gunman was on parole, Mr Andrews responded: “Well, I would make the point that he had served significant jail term and become eligible for parole at a later point than he might have hoped because his sentence had been increased because of poor behaviour.

“This is the advice I have, terrible behaviour in prison.

“He’s been compliant, including drug tests, attending appointments and observing a curfew.

“That’s the information that I have to this point.”

Victoria’s Police Commissioner said investigators would probe whether the terror gunman was trying to lure police into a deadly ambush.

Mr Turnbull this morning questioned why Khayre, who had a long history of violence, was on parole.

“How was this man on parole?” he said.

media_camera Yacqub Khayre leaves a court hearing in 2010. AAP Image/Julian Smith

“He had a long record of violence. A very long record of violence.

“He had been charged with a terrorist offence some years ago and had been acquitted.

“He was known to have connections, at least in the past, with violent extremism.”

Chinese media is reporting that the innocent man shot dead by Khayre was married just 15 days ago.

The 36-year-old’s body was found in the foyer of the Buckingham Serviced Apartments in Bay St by police soon after they arrived.

He is an Australian national of Chinese origin.

“He had done nothing wrong except work at the apartment,” police Chief Commissioner Graham Ashton said.

The escort is a 36-year-old Ripponlea woman.

Khayre was killed after he fired at police and was shot dead.

Islamic State is trying to claim responsibility for the deadly hostage drama, about 11km southeast of Melbourne CBD, saying the gunman was ‘one of its soldiers’.

But Mr Ashton said there was little evidence the incident was planned or co-ordinated with anyone else.

Mr Ashton said the gunman — confirmed as Mr Khayre, as revealed last night by the Herald Sun — was from Roxburgh Park in Melbourne’s north and lived with his mother.

media_camera Bomb squad officers on scene this morning. Picture: Alex Coppel.

media_camera Police are raiding Khayre’s home in Roxburgh Park. Picture: Jake Nowakowski

Police have seized computers and other devices from his house this morning.

The bomb squad returned to the Brighton apartments this morning with officers suiting up and heading into the building.

Police say they are just processing the crime scene and there is no bomb threat today.

media_camera Australian Federal Police and Victoria Police conduct an investigation at a house in Roxburgh Park in relation to a terror related shooting in Brighton. Picture: Jake Nowakowski

media_camera Police at the Roxburgh Park house. Picture: Jake Nowakowski

media_camera Forensic police remove evidence this morning. Picture: AAP

media_camera Forensic police hold an evidence bag outside the Buckingham Serviced Apartments. Writing on the bag says: “Hard covered book with Arabic writing (in cloth bag) on desk in living room. Picture: AAP

Last night’s deadly siege concluded when Khayre came out of the apartments with a shotgun and fired at police.

Two officers were injured in the hand, one in the neck.

“Fortunately they are OK,” Mr Ashton said.

“Two of them are currently now at hospital.

“One was treated at the scene and are still going under medical treatment.

“They are non-life-threatening which is what we’re grateful about.”

Mr Ashton added: “Nothing thus far will suggest to us that this was planned or done in concert with others.

Asked if he believed the gunman lured police to ambush and kill officers, Mr Ashton said: “It’s a possibility (but) we don’t know whether that was the case.

“Certainly a booking was made to see an escort at the premises.

“He’s then turned up at the premises with a firearm, that’s all been weighed into the calculations but we haven’t found anything like a note or any comment around that we’ve found so far.

“It’s early days.

“There’s search warrants being done.

“We’ve got computers and electrical items seized to go through.

“The AFP (Australian Federal Police) will assist us in that.

“It’s just too early to know how random this was in terms of whether it was something that he was planning or thinking about, whether police were the target or he’s seized the opportunity he thought was presented to him last evening.”

media_camera A police officer holds a gun over the front gate of the serviced apartments. Picture: AFP Photo/Mal Fairclough

Asked whether there was a genuine link with IS, Mr Ashton said: “Look, we’re aware of, online, them having claimed responsibility, but then they always tend to jump up and claim responsibility every time something happens so, we note that that has happened but he’s also made statements last night around al-Qaeda.”

Mr Ashton said the siege that lasted about two hours and involved heavily-armed specialist police was a “dangerous and volatile situation”.

“We deal with situations on a siege basis a lot but this was a very dangerous situation and required immediate action and that’s what we saw last night.”

Mr Andrews praised police this morning.

“What is beyond question in this incident and at all times is the professionalism, bravery, courage and effectiveness of our specialist police forces in this state,” he said.

“But be in no doubt the special operations group and others last night have put themselves in harm has way to keep the rest of us safe and that’s something that we should honour and it’s something that we should value.”

media_camera A body is removed from the scene early this morning. Picture: Nicole Garmston

media_camera A bomb robot goes in as police secure the scene last night. Picture: Yuri Kouzmin

The gunman at the centre of the siege was known to counter-terrorism investigators.

Khayre was charged and later acquitted over a terror plot to launch a suicide attack against Sydney’s Holsworthy army barracks in 2009.

IS this morning blamed the attack on Australia’s membership in the US-led coalition against the militant group.

“The attack in Melbourne, Australia was carried out by a soldier of the Islamic State in response to the call for targeting the subjects of the coalition states,” the group’s Amaq news agency said.

media_camera A bomb squad police officer at work at the apartments’ entrance. Picture: Yuri Kouzmin

Mr Ashton said the female hostage was an escort who had been booked by the gunman.

“Obviously (she’s) severely traumatised by what’s happened and that’s very understandable in those circumstances, as you can well imagine,” he said.

“But in terms of physical injury, she wasn’t physically injured by the offender but certainly kept in the apartment against her will.”

media_camera Media conference this morning with Chief Commissioner Graham Ashton, AFP Commander Brian McDonald, Premier Daniel Andrews and Police Minister Lisa Neville (right). Picture: Mark Stewart

BRIGHTON ATTACK A SHOCKING CRIME: PM

Prime Minister Turnbull said the incident in Brighton, coming so soon

after the attack in London, had shocked all Australians.

“This terrorist attack by a known criminal, a man who was only recently released on parole, is a shocking, cowardly crime,” he said.

“It is a terrorist attack and it underlines the need for us to be constantly vigilant, never to be deterred, always defiant, in the face of Islamist terrorism.

“What is clear here is that we face a growing threat from Islamist terrorism in Australia in our region and around the world.

“We will continue to defy it and we will continue to defeat it.”

Turnbull says Melbourne siege “is a terrorist attack”. Turnbull says Melbourne siege “is a terrorist attack”.

Mr Turnbull said there was concern about copycats but the terror threat level had not been raised for Australia.

“But all of these attacks, particularly given the way they are reported on, across the

world, all run the risk of promoting other copy cat incidents,” he said.

Australian Federal Police deputy commissioner Mike Phelan said there was a viable threat in Australia.

“Currently (there is) in excess of 70 ongoing operations throughout the country,” he said.

“In addition to that, there are, and the director general of security has put on public record,

the 200 people they are looking at.

“In addition to that, on an outer ring, are those who have come to attention, in each of the state jurisdictions monitored by the equivalent of their intelligence units and in the case of Victoria, that is in the hundreds.

“It is where people fit on the list.

“We are constantly putting people under review, depending on the intelligence that comes through, ongoing investigations, some someone comes up, a peripheral target, they get reassessed.”

As the siege was taking place Khayre called the Channel Seven newsroom in Melbourne and said ‘this is for IS (Islamic State)’ and ‘this is for al-Qaeda’.

Channel 7 chief of staff Nicole Bland, who took the call, told 3AW this morning that initially an extremely distressed woman was on the phone who she could not understand.

Then a man took over and said “this is the Brighton hostage” before naming IS and al-Qaeda.

media_camera Forensic police gathering vital evidence this morning. Picture: Yuri Kouzmin media_camera The forensic officers were concentrating on items at the entrance to the Bay St apartments. Picture: Yuri Kouzmin

The call came after the weekend London outrage in which terrorists shouted “this is for Allah” as they killed seven people.

RESIDENTS RUN AS TERROR COMES TO BRIGHTON

Witness Lee Griffin said last night tactical police hid behind rubbish bins before firing the fatal rounds.

“I heard an initial shot and then a wave of police arrived and that’s when the next shots

occurred,” Mr Griffin said.

“I saw police shoot the guy. It was terrifying.”

media_camera Local residents were told to take shelter in this Coles as shots rang out. Picture: Tim Carrafa

media_camera Police block Bay St. Picture: Tim Carrafa

media_camera Officers taking shelter behind the wall of the apartments at the height of the drama.

media_camera The front of the apartments in Brighton. Picture: Nicole Garmston

media_camera Police outside the apartment block. Picture: AFP Photo/Mal Fairclough

Moments later, officers freed the woman who had been held captive.

Daniel Andrews addresses the media after Melbourne siege Daniel Andrews addresses the media after Melbourne siege

A major police presence, including specialist tactical officers, remains at the scene today.

Neighbours reported hearing more than 20 gunshots in the area and police ordered everyone in the area to head to Coles supermarket.

media_camera Police at the scene in Brighton. Picture: Tim Carrafa

Father Graeme Hisgrove said he ordered his family to drop to the floor once the final shots were fired.

“After a while, without any notice there was this massive amount of gunfire,” he said.

“We all jumped to the floor of the lounge room and laid flat because we didn’t know where it was coming from.

“Once it was over, we could see the police get up and walk toward the apartments. I had a feeling it was over — that they’d shot him.

But we were locked in all night.”

His children Molly, 15, and Jack, 17, has just arrived home from school when the siege began to unfold.

Mr Hisgrove said his son alerting him to a “a man with a gun” at their backdoor.

“I was freaking out,” he said.

The SOG officer and other police entered their property, positioning themselves along the fence line.

“They told us to get inside and stay there.”

Witness Ben Vieth was standing on his balcony about 150m from the scene when gunfire erupted just after 6pm last night.

“Next minute we heard the machine gun go off,’’ he said.

“It was absolutely terrifying. It went for probably three or four seconds — just constant fire.

“The police were just screaming at people to run and take cover.

“People were just ducking and running. I was just in shock — I couldn’t stand up. It was full on.

“The noise was just deafening.

“It wasn’t a couple of shots.

“It sounded like 20 or 30 shots.”

As soon as the machine gun went off four ambulances sped to the scene, he said.

“They were obviously planned,’’ Mr Vieth said.

“Then I just heard two police were shot.”

media_camera Emergency services at the scene. Picture: Matt Talbot-Weichmann

Jack Reid, 20, who lives close to the apartment complex, was standing nearby with his 18-year-old brother when the shots started.

A police officer shouted at bystanders to flee to a nearby supermarket.

“The policewoman was just shouting at us to get into Coles and stay there,’’ Mr Reid said.

“It was pretty scary.

“She was just going: ‘Everyone get into Coles now! Stay inside! Don’t come out!

“We all figured it was a hostage thing.

“I am a bit shaken.

“The gunshots took us all by surprise.

“It went for at least three seconds. It sounded like a pistol or something.”

media_camera State Emergency Services outside the apartment complex. Picture: Valeriu Campan

Buckingham Serviced Apartments at 408 Bay St, is next to a children’s swimming school and several doctors offices.

The apartments advertised as “luxury” apartments with private balconies and “spacious and modern decor”.

One bedroom apartments cost $130 per night.

Firbank Grammar School and Brighton Grammar school are within walking distance of the scene and schoolchildren could be seen nearby in the aftermath of the siege.

media_camera The shopping strip was blocked off in the early afternoon. Picture: Valeriu Campan

media_camera More than 20 shots were fired during a hostage situation in Brighton. Picture: Matt Talbot-Weichmann

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wes.hosking@news.com.au</s>Brighton siege: Melbourne police launch terror probe, investigate if escort was used to lure officers

Updated

Police are investigating whether the Brighton siege gunman took an escort worker hostage in a bid to lure officers into a deadly ambush.

Key points: One man was killed, a woman was taken hostage and three police were injured before the gunman was shot dead

Islamic State said one of its "soldiers" was responsible, but police questioned links with the group

The gunman, Yacqub Khayre, had a history of violent crime but was on parole

Gunman Yacqub Khayre injured three officers during a shoot-out that ended in his death at an apartment building in Melbourne's Bayside area on Monday afternoon.

The 29-year-old, who has an extensive criminal history and was released on parole in December, had made a booking with the escort worker, taken her hostage and killed a man who was working at the building.

Police said it was possible Khayre, from Roxburgh Park in Melbourne's north, may have been attempting to lure police by taking the escort hostage.

"We still don't know exactly whether that was the case," Victoria Police Chief Commissioner Graham Ashton said.

"Certainly [there was] a booking made to see an escort at the premises. He's then turned up at the premises with a firearm, that's all being weighed into the calculations.

"We haven't found anything like a note or any comment around that.

"At this stage it's just too early to know how random this was in terms of whether it was something that he was planning or thinking about, whether police were the target or he's seized the opportunity he thought was presented to him."

Corrections Victoria confirmed Khayre, who had a history of drug abuse, had been fitted with an electronic monitoring device as part of his parole conditions when he was released to ensure that he kept to a 10:00pm curfew.

An alert that the device had been tampered with was received on Monday about 4:00pm, a Corrections spokesman said.

The authorities monitoring the device contacted police and the offender's parole officer.

Channel 7 reported its newsroom received a phone call shortly before the shoot-out from a man who said: "This is for IS. This is for Al Qaeda."

It also reported a distressed woman could be heard on the line, before the man said, "This is the Brighton hostage".

How the siege unfolded: Emergency services respond to reports of an explosion just after 4:00pm

Officers discover the body of a man in the foyer of the building

A woman calls triple-0 to say she is being held hostage

A man calls Channel 7 and says: "This is for IS. This is for Al Qaeda."

Yacqub Khayre, 29, leaves the apartment and starts firing at officers, injuring three

Khayre is shot dead by officers



Khayre was charged and acquitted by a jury over a plot to attack the Holsworthy Army barracks in Sydney in 2009.

Three of his co-accused were found guilty of planning the terrorist attack as payback for Australia's military action in the Middle East.

Earlier, the Islamic State (IS) group claimed responsibility for yesterday's siege.

He also killed a man working at the apartment building, who police said was an Australian citizen born in China.

Commissioner Ashton said the siege was being treated as a "terrorism incident", but warned that IS's claim was "the sort of thing they jump up and say a lot" and there was no evidence to indicate Khayre was acting on a message from overseas.

"[Khayre] has a long criminal history with us, but also from what we're piecing together comments he made related to ISIS and Al Qaeda certainly for us put this in the terrorism category," he said.

"We don't yet know if this was something he was really planning or whether it was just an ad hoc decision that he's made just to go off tap like this."

Khayre 'known to have connections' with extremism

Commissioner Ashton said Khayre was released on parole late last year after serving jail time for unrelated offences.

"He has recently done some jail time, he got out late last year and has been on parole at the time of this offending last night," he said.

"This person wasn't someone around which we had major concerns at this time, and we had nothing to suggest [he was planning] what he did suddenly decide to do."

Prime Minister Malcolm Turnbull said he had raised "grave questions" with Victorian Premier Daniel Andrews about the state's parole laws.

"[Khayre] was known to have connections, at least in the past, with violent extremism. He was a known, violent offender," Mr Turnbull said.

Mr Andrews said the state had the country's toughest parole laws and there were about 800 fewer people out on parole since a recent review.

Police this morning searched a Roxburgh Park home, where Khayre had been living with his mother, and seized computers and electronics.

IS published a statement via its Amaq propaganda arm, which said the attack was carried out by one of its "soldiers".

Stand-off began with reports of explosion, man killed

Khayre was shot dead following a stand-off with police which lasted for more than an hour at serviced apartments on Bay Street in Brighton.

Commissioner Ashton confirmed the call received by Channel 7 was being investigated.

The siege began just after 4:00pm when emergency services responded to reports of an explosion at the apartment building.

Police discovered the body of a man with gunshot wounds in the foyer.

Commissioner Ashton confirmed the man worked at the apartment building, and said he was "at the wrong place, at the wrong time".

Just before 6:00pm, Khayre left the building and fired at police with a shotgun, who returned fire and killed him.

Three male officers were shot by the man during the shoot-out.

All sustained non-life threatening injuries. Two had hand injuries and one was injured in the neck.

A woman, in her 20s, who was held hostage by Khayre was rescued.

Police confirmed she was an escort worker, whom Khayre had called.

Police believe gunman acted alone

Commissioner Ashton said police did not have any information to suggest there was any ongoing threat to the community.

"There is nothing that we've found thus far that would suggest to us that this was anything that was planned, or done in concert with others," he said.

"We believe at this stage that he was acting alone and there isn't an ongoing threat in relation to any plot or anything around this individual.

"He hasn't been someone who has been a major concern in relation to terrorism aspects. It's more general criminal offending he's been involved with.

"So there really wasn't anything sitting there in recent times that suggested he was about to do this from an intelligence point of view."

Jacinta Carroll, who heads the Counter-terrorism Policy Centre at the Australian Strategic Policy Institute, said Amaq's use of the term "soldier" when referring to the attack suggested Khayre was not directly involved with IS.

"That's the language they use when they have confirmed the person appears to align with an Islamist extremist ideology, but they weren't involved in it," she said.

Mr Turnbull said Australia's terror threat level remained "probable".

'We all hit the deck'

Icy Agustsson, who lives two houses away from the Roxburgh Park property, said he saw the gunman speaking to his mother last week.

He said he had no idea about Khayre's criminal history.

"They seemed friendly," he said.

"I don't talk much to them because they kept to themselves. People do keep to themselves in this area."

Graeme Hisgrove, who lives next door to the Brighton serviced apartments, said police used his backyard during their operation.

"I was out in the backyard and I heard a large bang, and when I went out on the street to see what was going on, all the police were there and told us to get back in the house," he said.

"I ran back into the house and next thing the Special Operations Group turned up and went through the house and then staked out on our boundary.

"We were just in the front room of the house and all the rapid fire started, so we all hit the deck on the floor and just didn't know what was going on."

Topics: crime, terrorism, police, brighton-3186, melbourne-3000, vic

First posted</s>(CNN) An armed standoff in Melbourne, Australia, which left one civilian dead and two police in hospital was a “terrorist incident,” Australian Prime Minister Malcolm Turnbull told reporters Tuesday.

The Australian leader said the attack in the suburb of Brighton had “shocked all Australians.”

“This terrorist attack by a known criminal, a man who was only recently released on parole, is a shocking, cowardly crime. It is a terrorist attack and it underlines the need for us to be constantly vigilant,” he said.

One man was killed and three police officers shot after a standoff at an apartment building in Melbourne, the capital of the Australian state of Victoria.

Victoria Police Deputy Commissioner Andrew Crisp told reporters a woman had been held hostage in an apartment Monday.

Later, police said they were aware of a claim from ISIS that one of its “soldiers” carried out the attack.

“Police are aware of the claim and it will form part of the investigation,” Victoria Police senior media officer Natalie Webster said.

ISIS issued the claim through its Amaq News Agency in Arabic and English.

Police were called to the scene after emergency calls reported loud bangs or explosions, Crisp said, adding no detonations had been confirmed.

Once law enforcement arrived at the apartment block shortly after 4 p.m. local time, they found a man dead on the lobby floor with a gunshot wound.

A second man was holding a woman against her will in one of the apartments. Police earlier said they attempted to negotiate with him but Crisp said later he was not aware of any contact with the gunman.

Two hours later, the gunman unexpectedly left the apartment and began firing at police. Three male officers were shot before the assailant was gunned down. Their injuries aren’t life-threatening, police said.

Brighton is a suburban area in eastern Melbourne, known for its affluent residents and close proximity to the beaches of Port Philip Bay.

Roads around the area were closed throughout the standoff and will remain closed for some time, police said.</s>Two men are dead in Melbourne, Australia after an incident in which a woman was taken hostage.

Police arrived at the Bay St apartment building in Brighton at 4pm (local time) today to find the body of the man in the foyer.

In a statement Victoria Police say another man has been shot dead by police in the apartment.

They say the woman being held against her will was safely rescued.

Three police officers sustained non-life threatening injuries during the incident.

According to Seven News a man called the television network and said "This is for IS, this is for Al Qaeda".

Local media reported an explosion was heard at the scene.

Police say they are "investigating whether the incident is terrorism related".</s>Melbourne police say they are treating yesterday's shooting and hostage situation as terrorism after the Islamic State group claimed responsibility for the siege, in which a man was killed, several police were injured and a woman was held against her will.

Victoria Police Chief Commissioner Graham Ashton said the gunman, who the ABC understand was Yacqub Khayre, was known to police and had a long criminal history.

"We are treating it as a terrorism incident," Commissioner Ashton told ABC News Breakfast.

He said the gunman "had been involved in a terrorism matter up in New South Wales back in 2009".

IS published a statement via its Amaq propaganda arm, which said the attack in Melbourne was carried out by one of its "soldiers".

"The attack in Melbourne, Australia was carried out by a soldier of the Islamic State in response to the call for targeting the subjects of the coalition states," the statement said.

The gunman, believed to be Yacqub Khayre, was shot dead following a stand-off with police which lasted for more than an hour at serviced apartments on Bay St in Brighton, while a woman was held hostage.

Victoria Police Assistant Commissioner Andrew Crisp told media on Monday night police were investigating reports of a phone call made to the Channel 7 newsroom by someone referencing Islamic State.

"That's all part of the investigation at this point in time as to who made that phone call, but we will certainly be working with Channel 7 in relation to that phone call," he said.

The siege began just after 4:00pm when emergency services responded to reports of an explosion at the apartment building.

Police discovered the body of a man with gunshot wounds in the foyer.

Just before 6:00pm, a man left the building and shot at police, who returned fire and killed him.

Three male officers were shot by the man during the shoot-out. All sustained non-life threatening injuries.

A woman who was held hostage by the man was rescued.

'We all hit the deck'

Police have not named the gunman.

Graeme Hisgrove, who lives next door to the serviced apartments, said police used his backyard during their operation.

"I was out in the backyard and I heard a large bang, and when I went out on the street to see what was going on, all the police were there and told us to get back in the house," he said.

"I ran back into the house and next thing the Special Operations Group turned up and went through the house and then staked out on our boundary.

"We were just in the front room of the house and all the rapid fire started, so we all hit the deck on the floor and just didn't know what was going on."

More to come.</s>Islamic State is claiming responsibility for the Melbourne hostage attack that left the gunman and another man dead.

'The attack in Melbourne, Australia was carried out by a soldier of the Islamic State in response to the call for targeting the subjects of the coalition states,' the group's Amaq news agency said.

IS blamed the attack on Australia's membership in the US-led coalition against the militant group.

The gunman at the centre of the incident has been named in the media as Yacqub Khayre who was acquitted over the Holsworthy terror plot in 2009.

On Monday afternoon, the Seven Network took a phone call in its Melbourne newsroom from a woman who said she was in a hostage situation before man came on the line saying 'This is for IS, this is for al-Qaeda'.

Victoria Police are investigating the incident at Brighton on Monday evening as a potential terror incident.

'The reasons for that are that this person has a background in relation to terrorism matters, albeit some years ago,' Chief Commissioner Graham Ashton told Nine on Tuesday morning.

He said there had been no information that he had been planning an attack.

'He is someone certainly known to us from his background but certainly as of yesterday there wasn't anything that we had that suggested that he was planning on embarking on this, that this was anything more than a spontaneous act.'

Victorian Premier Daniel Andrews and Mr Ashton will hold a press conference at 8.30am on Tuesday to address fears of a terror link.

Sources told the Herald Sun he was rated as 'a low-risk person of interest' by anti-terror police.

Khayre was acquitted over the terror plot to launch a suicide attack against Sydney's Holsworthy army barracks in 2009 after a trial in 2010.

In 2007, he was charged with armed robbery after holding up passengers on a Melbourne train, leaving one man with knife wounds.

Police were called to the Brighton serviced apartment building at 5.41pm on Monday to reports of an explosion.

When they arrived, they found a man apparently shot dead in the foyer.

They began efforts to negotiate with the gunman who was holding a woman hostage in one of the apartments.

Deputy Commissioner Andrew Crisp said on Monday night that the man spoken to by negotiators inside the building came out about 6pm and opened fire, hitting three police.

They returned fire and killed him.

Two male officers were taken to hospital for treatment while another was treated at the scene.</s>The gunman, who has been named by police as Yacqub Khayre, took a woman hostage in an apartment building in the upmarket Melbourne suburb of Brighton on Monday night. Khayre was shot dead by police when he opened fire on officers with a sawn-off shotgun, wounding three officers. The body of another man, who was an employee of the serviced apartments, was discovered when police entered the building.

Police said the gunman arranged to meet the woman he held hostage at the Buckingham Serviced Apartments in Brighton after booking her services through an escort agency. Victoria Police Commissioner Graham Ashton told ABC: “At the scene, when this person’s first arrived there, a man was shot, we believe, by the gunman. “He was an employee of the serviced apartments, so he appears to have been in the wrong place at, unluckily, the wrong time.” Authorities have confirmed they are treating the siege as an “act of terror”.

ISIS published a statement saying the attack had been carried out by one of its twisted jihadis. The Amaq news agency reported: “The attack in Melbourne, Australia, was carried out by a soldier of the Islamic State in response to the call for targeting the subjects of the coalition states.” Meanwhile, the Seven Network reported the gunman called the organisation saying “This is for ISIS. This is for al-Qaeda.”

Yet this claim appears to conflict with ISIS’s claim of direct responsibility and New York Times reporter Rukmini Callimachi, a renowned terror correspondent. Mr Callimachi said the incident appeared to fit a pattern where ISIS fanatics took matters into their own hands without necessarily receiving direct instructions from the barbaric terror cell. The siege began at the Buckingham Serviced Apartments in Brighton on Tuesday evening after a female hostage, believed to be in her 20s, made an emergency call to tell officer se was being held against her will and a man had been killed. Heavily armed police rushed to the scene and after a standoff, Khayre was shot dead. Australian prime minister Malcolm Turnbull described the attack as “shocking and cowardly”.

Speaking to reporters, he added: “It is a terrorist attack and it underlines the need for us to be constantly vigilant, never to be deterred, always defiant, in the face of Islamist terrorism.” Khayre was on parole at the time of the attack and was jailed for an armed robbery. His time in custody was extended for poor behaviour in prison. In 2009, he was acquitted of involvement in a terrorist plot targeting the Holsworthy army barracks in 2009. Mr Turnbull said there were “very grave” questions that must be answered.</s>Australian police on Monday shot dead a man who took a woman hostage in a Melbourne apartment after the body of another man was found in the building's lobby. The woman escaped safely but three officers were injured as police stormed the building, an AFP report said.

"Police have resolved a hostage situation at an apartment block in Brighton (Melbourne suburb)," Victoria state police said in a statement. "A man has been shot dead by police in the Bay Street apartment complex shortly before 6 pm. Police have safely rescued a woman who was being held against her will in the apartment block," the statement said.

Police were responding to reports of an explosion at the apartment earlier in the day when they found the body of a man in the foyer.

"Another man was earlier found dead with a gunshot wound in the lobby of the serviced apartment building just after 4 pm," the police said.

According to reports, the emergency services, including SES crews, were called to the scene just after the explosion.

Police said it appeared the man in the foyer was shot dead and specialist police attempted to negotiate with a man in one of the apartments. "Police were attempting to negotiate with a man in one of the apartments," the spokeswoman told IANS.

According to India Today TV channel, 40 rounds of gunfire and a loud explosion were heard on Bay Street.

"Victoria Police specialist units are currently on the scene. Roads are closed in the vicinity and we urge the community to avoid the area," the spokesperson added.

A report by ABC onlinesaid police are investigating whether the incident is terrorism related.</s>A man appears to have been shot dead and a woman has been taken hostage after an explosion in a Melbourne apartment building.

Police arrived at the Bay St apartment building in Brighton at 4pm (local time) today to find the body of the man in the foyer.

They were responding to reports of an explosion.

"Police are attempting to negotiate with a man in one of the apartments. It's believed he has a woman inside with him who he won't allow to leave," a police spokeswoman said in a statement.

"Victoria Police specialist units are currently on scene."

The apartment building is near the Nepean Hwy, one of the major traffic corridors to southern Melbourne.

Roads in the area have been closed during peak hour, and police are urging people to avoid the area.</s>Australian police Tuesday said they were treating a deadly shooting and siege in Melbourne as a terrorist incident after the Islamic State group claimed responsibility.

A man of Somali background was killed in a gun battle with police when he opened fire after taking an escort girl hostage at an apartment block in the city on Monday evening.

It is alleged Yacqub Khayre, 29, had first killed a Chinese-born Australian man in the foyer.

Police said he had made statements "around Al-Qaeda" and called a local television station making similar comments, reportedly saying: "This is for IS, this is for Al-Qaeda."

"We're treating this as a terrorism incident," Victoria Police chief commissioner Graham Ashton said, but added that investigations were still ongoing into whether it was planned or random.

"We're not seeing anything indicating that he's got some message from overseas to do this at all but, again, early days. We've got material that's seized. We'll go through that and work it out."

The Amaq news agency -- which is affiliated with the so-called Islamic State group -- carried a statement claiming responsibility.

"The executor of the Melbourne attack in Australia is a soldier of the Islamic State and he carried out the attack in response to appeals to target citizens of coalition states," it said.

Ashton said IS "always tend to jump up and claim responsibility every time something happens" and it was too early to determine whether they were involved.

Authorities had responded to reports of an explosion at the building -- which turned out to be a gunshot -- in the affluent beach suburb of Brighton and arrived to find a dead body in the foyer.

"Subsequently he (Khayre) came out of the apartment with a shotgun and commenced to fire at police at the entry-way to the apartments..." Ashton said.

"He's exchanged gunfire with police and has been fatally shot by police at the scene."

The escort escaped unharmed but three police were hurt in the firefight, although their injuries were not life-threatening.

Australian officials have grown increasingly concerned over the threat of militant attacks.

They say they have prevented 12 attacks on home soil since the threat level was raised in September 2014, with more than 60 people charged.

But four have gone ahead, including the murder of a Sydney police employee in 2015 by a 15-year-old boy.
In Brighton, a suburb of Melbourne, Australia, a gunman kills one man and holds one woman hostage before he is shot dead by Victoria Police. The incident is being treated as an act of terrorism. Islamic State in Iraq and the Levant has claimed responsibility for the attack but Victoria Police claim that there is little evidence to suggest a connection.