AAP reports Islamic State has claimed responsibility for Monday's siege through their Amaq news agency, which claimed: "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."
Federal police say they are investigating a terrorist incident after self proclaimed Islamic State said that one of its fighters was the gunman responsible for a hostage situation in Melbourne on Monday.
Police shot dead the gunman, identified as 29 year old Yacqub Khayre whom they said had held a woman hostage inside an apartment building in the city of Melbourne.
They also discovered the body of another man, an employee at the serviced apartments in Brighton.
Victoria's Police Commissioner, Graham Ashton, says that Khayre had been known to authorities and had been linked to the Holsworthy army barracks terror plot in 2009 - over which he was aquitted.
"Look, he has got a long criminal history going back many years. A lot of - I describe it as an extensive criminal history involving a whole range of offences. He has recently done some jail time, got out late last year, I think November, and has been on parole at the time of this offending last night."
It's believed he was acting alone.
IS has said, via its news agency, Amaq, that the attack was launched because of Australia's membership in a U.S.-led coalition against the militant group.
Prime Minister Malcom Turnbull says the incident in Brighton, coming so soon after the attack in London has shocked all Australians.
He described it as a shocking, cowardly crime and spoke of a growing threat from terrorism in Australia and the rest of the world.
He said issue of parole will be addressed at the COAG meeting of ministers from across the country on Friday.
"How was this man on parole? 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. But he was a known, violent offender. How was he on parole?"
Victorian Premier Daniel Andrews says the circumstances around Khayre's parole will be investigated.
"I would point to the fact that the sentence did not relate to terrorism acts. He was actually acquitted of charges in New South Wales, as we all know.
"The jail sentence and his parole was in relation to other criminal acts that weren't of a terrorism nature. Of course it is of concern to all of us that somebody who would be compliant with each and every term and provision of the parole they had been granted and were eligible for could commit such a crime."
More details to follow.
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