Australian Prime Minister Anthony Albanese on Sunday told reporters in Canberra that he was "devastated by the massacre on Bondi Beach where 12 people, including one of the shooters, died.

He convened a meeting of the country's national security council and condemned the attack, saying the evil that was unleashed was "beyond comprehension".

“This is a targeted attack on Jewish Australians on the first day of Hanukkah, which should be a day of joy, a celebration of faith, an act of evil, antisemitism, terrorism that has struck the heart of our nation,” Albanese said. “There is no place for this hate, violence and terrorism in our nation.”

Albanese said the authorities were working to identify everyone involved in the attack.

“Let me be clear we will eradicate it amidst this vile act of violence and hate will emerge a moment of national unity where Australians across the board will embrace their fellow Australians of Jewish faith,” he said.

“The evil that was unleashed at Bondi Beach today is beyond comprehension, and the trauma and loss that families are dealing with tonight is beyond anyone’s worst nightmare.”

He also hailed the "heroes" who stepped in to help.

"We have seen Australians today run towards dangers in order to help others. These Australians are heroes and their bravery has saved lives."

The New South Wales state premier Chris Minns told a media briefing afer the shooting that the "attack was designed to target Sydney's Jewish community”.

"I can only imagine the pain that they're feeling right now to see their loved ones killed as they celebrate this ancient holiday. It's the responsibility of all Australians to wrap their arms around Australia's Jewish community and help them get through this incredibly difficult period," he said.

Witnesses fled the scene and hid as shots rang out.

Lachlan Moran, 32, from Melbourne, was waiting for his family nearby when he heard shots. He dropped the beer he was carrying for his brother and ran.

“You heard a few pops, and I freaked out and ran away. ... I started sprinting. I just had that intuition. I sprinted as quickly as I could," Moran said. He said he heard shooting off and on for about five minutes.

“Everyone just dropped all their possessions and everything and were running and people were crying and it was just horrible," Moran said.

Grace, 30, from Melbourne and her partner Joel Sargent, 30, said they were in their hotel room when they heard a banging sound and looked out of their window to see people running down the street, hiding behind trees and cars.

“People were screaming, and the gun sounded so loud," Grace said. "It was constant; it would have been over 50 [shots], easily.” (Agencies)