A police statement said it happened after a number of shots were fired at about 16:30 local time.
The statement said it appeared an officer had discharged his weapon, responding to a report that one person had been shot.
The identities of those killed have not yet been established.
A critical incident team will now investigate all circumstances surrounding the incident, police say.
Vijay Dantu, who lives opposite the police building, told the Australian Broadcasting Corporation he heard multiple gunshots.
A critical incident team will now investigate all circumstances surrounding the incident, police say.
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