Specialist police who stormed the Lindt Cafe "did not fire indiscriminately or excessively", the state coroner has found, and the death of hostage Katrina Dawson who was hit by bullet fragments was a terrible accident.
Coroner Michael Barnes on Wednesday said it was "tragic" that fragments of one or more bullets fired at gunman Man Haron Monis by the first Tactical Operations Unit officers to storm the cafe struck and killed Ms Dawson.
It was also "highly regrettable" that three other hostages were wounded, he said.
"It is true that the more bullets fired, the higher the risk that this would have happened," Mr Barnes said in Sydney on Wednesday.
"However, I accept that the officers had to ensure Monis was completely incapacitated before they stopped firing. The officers did not fire indiscriminately or excessively."
Officer B was the first to enter the Lindt Cafe in the early hours of December 16, 2014.
He fired immediately and fell to the ground when he was struck in the face by a projectile. He then regained his feet and took cover.
"I find that Officer B was lawfully justified in firing at Monis when he did and that he did not use excessive force," the coroner said.
Officer A fired his rifle 14 times when he entered the Lindt Cafe a second later. He kept firing until he perceived Monis was no longer a threat.
"His use of force was not excessive," Mr Barnes found.
Ms Dawson had dropped to the floor seeking cover when the officers stormed the cafe.
They couldn't have seen her and couldn't have done anything to enhance her safety that was consistent with their "primary imperative" to incapacitate Monis, the coroner said.
"Her death was a terrible accident which occurred after Monis had left the officers with no option other than to storm the cafe."
The coroner did find too many distraction devices were deployed when the officers went in.
Eleven devices produced 99 explosions which was counter-productive.
But Mr Barnes said that was not the fault of individual TOU officers.
"The police force has no policy or procedure regarding the use of such devices - that should be remedied," the coroner found.
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