ASIO examined Bondi Beach gunman Naveed Akram in 2019 for close ties to Islamic State cell

Australia's domestic intelligence agency, ASIO, examined one of the Bondi Beach gunmen six years ago over his close ties to a Sydney-based Islamic State (IS) terrorism cell, the ABC understands.

Naveed Akram, 24, and his father, Sajid Akram, 50, killed 15 people on Sunday evening when they opened fire on the Chanukah by the Sea event celebrating the first day of the Jewish festival.

Naveed Akram is in hospital under police guard after his father was shot dead in an exchange of gunfire with police on Sunday.

Heavily-armed police on Sunday night raided their home in Bonnyrigg, in south-west Sydney, as well as an Airbnb property in Campsie where the men had been staying.

The ABC understands investigators from the Joint Counter Terrorism Team (JCTT), a unit comprised of state and federal agencies, believe the gunmen had pledged allegiance to the IS terrorist group.

Two IS flags were found in their car at Bondi Beach, according to senior officials speaking on condition of anonymity.

One flag could be seen in footage from the scene on the bonnet of the car.

A senior JCTT official, speaking on condition of anonymity, said ASIO took an interest in Naveed Akram six years ago after police foiled plans for an IS terrorist attack.

Prime Minister Anthony Albanese confirmed Naveed Akram first came to ASIO's attention in October 2019 and was under investigation for a period of six months but there was an assessment he posed no ongoing threat.

The official said Naveed Akram was closely connected to Isaac El Matari, who was arrested that year and later jailed for planning an IS insurgency as the self-declared Australian commander of the terrorist group.

Matari was part of an IS cell with several other Sydney men who have since been convicted of terrorist offences and were also close to Naveed Akram, according to sources with close knowledge of the matter.

ASIO director-general Mike Burgess said on Sunday that one of the gunmen was known to the agency, but did not specify which man.

"One of these individuals was known to us, but not in an immediate-threat perspective, so we need to look into what happened here," he said.

The JCTT comprises ASIO, NSW Police, the Australian Federal Police and the NSW Crime Commission.

Father was a licensed firearms holder

Speaking to reporters on Monday morning, NSW Police Commissioner Mal Lanyon said Sajid Akram had been a licensed firearms holder for the past 10 years.

"He has six firearms licensed to him. We are satisfied that we have six firearms from the scene yesterday," he said.

"He was determined to be entitled to have a firearms licence and had a firearms licence.

"[That] person had a firearms licence for a number of years, for which there were no incidents and it was regulated."

Commissioner Lanyon said police believed there were just two people involved in the attack and were not looking for anyone else who was "directly involved".

A total of 328 police officers would be sent to places of worship on Monday as part of Operation Shelter, the commissioner said.

Police raid homes over attack

Law enforcement officers are now turning their attention to the lead-up to the two men committing one of the worst mass casualty events in modern Australian history.

Police are continuing an operation at the Akram family home in Bonnyrigg on Monday morning after raiding the premises on Sunday night.

The ABC spoke briefly to Venera Akram, Naveed's mother, after police had shut off the street and surrounded the family home on Sunday evening.

"I'm not talking till the cops coming there," she said.

Lemanatua Fatu, who lives in a neighbouring property, described the family as "normal" neighbours.

"We couldn't sleep, we were watching everything. It was so scary," Ms Fatu said.

"We thought they were normal people. We were so shocked to notice one of the guys who shoot people live here.

"Shocking and terrifying. I was worried about my family and my kids."

Renato Padilla, another neighbour of the Akram family, said he saw three people — two women and a man — emerge from the house some time after 10pm after police began calling on loudspeaker for them to "come out and put their hands above their head".

"They were interviewed by police [on the street] and then they were taken away," he said.

Mr Padilla said he saw a second group of people emerge from the house after midnight, and then "police went in and looked at the house".

A further search warrant has also been executed at a home in Campsie in connection with the attack, police sources said.

NSW Police said that, as well as the firearms seized from the scene at Bondi Beach on Sunday, two improvised explosive devices were removed from a car on nearby Campbell Parade.

Islamic teacher condemns 'act of violence'

The ABC has confirmed Naveed Akram studied for one year at Al Murad Institute in Western Sydney, which has strongly condemned the attack.

Institute founder Adam Ismail told the ABC the events at Bondi were a "horrific shock, 100 per cent", and that his family had received death threats after a photo of him with the alleged shooter circulated online.

In a video statement, Mr Ismail said he wanted to be extremely clear he had no involvement in the terror incident.

"Naveed approached the centre in late 2019 seeking Koran recitation and Arabic language classes," he said.

"As I have done with thousands of students over the years, I have taught him Koranic recitation and Arabic only for a combined period of one year. These are the only subjects I taught him and these are the areas I specialise in.

"I condemn this act of violence without any hesitation, I am deeply saddened by what occurred and I extend my sincere condolences to the victims, their families and the Jewish community affected."

Mr Ismail said the attack was forbidden in Islam.

"What I find completely ironic is that the very Koran he was learning to recite clearly states that taking one innocent life is like killing all of humanity," he said.

"This makes it clear that what unfolded yesterday at Bondi is completely forbidden in Islam.

"Not everyone who recites the Koran understands it or lives by its teachings, and sadly that appears to be the case here."

Fifteen victims are dead after the attack on a Jewish holiday event overlooking Bondi Beach, as well as gunman Sajid Akram.

Mr Albanese on Monday morning described the attack as "an act of pure evil".

"What we saw yesterday was an act of pure evil, an act of antisemitism, an act of terrorism on our shores at an iconic Australian location," he said.

"[Bondi Beach is] associated with joy, associated with families gathering, associated with celebrations.

"And it is forever tarnished by what has occurred last evening."