Australian authorities say no stone will be left unturned as the country confronts a terrorist attack on one of the country's most famous beaches.

Sixteen people are dead and more than 40 injured - after two gunmen dressed in black opened fire at a Jewish Hanukkah celebration last night, just before 9pm NZT.

It's being treated as a terror event deliberately targeting Sydney's Jewish population. 

Australian correspondent Murray Olds says tributes are flooding in following the incident - and investigations are ongoing. 

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