Police charged alleged Bondi killer Naveed Akram with terrorism, 15 counts of murder and a litany of other crimes on Wednesday after Australia's worst mass shooting in decades.

"Police will allege in court the man engaged in conduct that caused death, serious injury and endangered life to advance a religious cause and cause fear in the community," New South Wales state police said.

"Early indications point to a terrorist attack inspired by ISIS, a listed terrorist organisation in Australia," they said in a statement, using another name for the Islamic State group.

Meanwhile, mourners collapsed in grief Wednesday as they honoured a rabbi slain in the Bondi Beach attack, the first of 15 victims laid to rest after Australia's worst mass shooting in decades.

What happened?

Emergency services responded to reports of shots fired at 6:47 pm (0747 GMT) Sunday at Bondi Beach, one of the biggest tourist draws in Australia's largest city.

The shooting took place during an annual event to celebrate Hanukkah, which police said was attended by around 1,000 people.

Casualties

Police say the attackers fired into the crowds, killing 15 people aged from 10 to 87. Forty-two people were hospitalised overnight, including five in a critical condition. Among them are two police officers wounded in a shootout with the gunmen.

The gunmen

Police say one of the assailants was a 50-year-old father who was shot and killed in a shootout with officers.

The other was his 24-year-old son, who is in a critical condition in hospital, under police guard.