Police are responding to a "developing incident" at Sydney's Bondi Beach after reports of multiple shots being fired.
The Sydney Morning Herald reported the shooting but said it was unclear if anyone had been hit.
New South Wales police said two people are in custody at Bondi Beach but added the operation is ongoing.
"We continue to urge people to avoid the area. Please obey ALL police directions. Do not cross police lines," the force said on social media.
"We are aware of an active security situation in Bondi. We urge people in the vicinity to follow information from NSW Police," a spokesperson for Prime Minister Anthony Albanese said.
Sky News correspondent Nicole Johnston, in Sydney, said she has seen some of the graphic video that is now circulating on social media.
"It is graphic and it is shocking. You can see two men, active shooters, firing from a pedestrian bridge right at Bondi Beach," she tells Sky News.
"There's also video of injured people on the ground. They're receiving medical treatment. There is blood on the ground. So clearly that have been sort of at least a number of injured people there."
Sky News has not yet been unable to verify video circulating on social media.
Two people are in custody, police say. People have been urged to avoid the area and obey all police directions.
news.sky.com