Member for Port Macquarie Leslie Williams said no one ever imagined they would witness such scenes on Australian soil or so close to home on the streets of Sydney.

"Our thoughts are with the family and friends of the innocent victims of this appalling event and also with the hostages who endured 17 hours of horror - a trauma that will remain with them for the rest of their lives," she said.

"In Port Macquarie we are an extremely generous group of people and a community that always stands together - we need to continue to do that and continue to talk to each other."

Mrs Williams said terrorism was a part of the world we live in.

"We have to accept it is there, but I have nothing but praise for our police and emergency services whose actions vindicate why they are held in such high regard in the community - their professionalism and courage are second to none."

St Agnes' parish priest, Father Leo Donnelly, sympathised with the vast majority of "moderate Muslim citizens in our midst".

"They must be embarrassed and mortified by the actions of the man at the centre of this unhappy event.

"It should be kept in mind that given his criminal history he was obviously a deranged man and one can only wonder why he was out on bail."

Father Donnelly was disappointed at the television coverage which he felt was excessive and irresponsible.

"Certainly it gives encouragement to any other extremist in our midst who might be tempted to perform a copycat event. Finally, it is sad that it is so, but moderate Muslims and Christians are the ones suffering most from this deadly extremism, especially in the Middle East and Africa."

Mayor Peter Besseling said the hostage situation in Sydney had shocked and saddened the Australian community.

"I'd like to extend my deepest sympathies and thoughts to all the individuals involved and the families who have lost a loved one."

Councillor Adam Roberts said the hashtag #illridewithyou was indicative of what Australia was as a culture.

"This is the real Australia, let's embrace it," he said. "It's reflective of the mateship culture associated with Australians."

Nationals MP Dr David Gillespie said the incident was a tragedy to see anywhere, but for it to be in a coffee shop in the middle of Sydney showed Australians were not immune from terrorism or extremism.

"Australians are peace loving people whether they're Christian, Muslim or Jewish," he said.

"The Muslim community I know don't support anything remotely associated with what happened in Sydney. This warped sense of radicalism is not shared by the people I know."

Reverend Ken Fenton said it was important for different religions to now understand each other.

"You can't escape the religious side of this, but let's teach knowledge. Let's learn to understand each other," he said.

For Port Macquarie dentist, Tareq Rashdan, the Australian spirit will shine through in the face of the tragedy.

"As an Australian Muslim I am shocked and devastated by what happened. My heart and prayers are with the innocent victims and their families," Mr Rashdan said.

"What happened is a criminal act regardless of the identity, faith or motivation of the perpetrators. This criminal act is condemned unequivocally and such actions are denounced in part, and in whole, in Islam.

"Yet, as always in critical moments and hard challenges, the Australian spirit shines. This Australian again will lift this country from the depths of despair and sorrow to the great heights of hope.

"We in Australia have a legacy of diverse cultural and religious backgrounds which is an envy for others. Our differences enriched and collectively form our Australian identity, as a society we celebrate those differences and embrace them as they make Australians what they are.

"Australia is built on the promise of freedom and dignity for every human being - a generous, compassionate, tolerant Australia that is open to the dreams of immigrants.

"It is this kind of country that makes me believe, that something better awaits us so long as we have the courage to keep reaching for each other, supporting each other and caring for each other.

"I ask the community to sustain the kind of hope that despite the enormity of the tragedy, or the roadblocks that stand in our path, we will get through this stronger as a family - as an Australian family."