UPDATE: A man has been taken into police custody and two guns have been seized from the cafe. It is believed the 69-year-old held up two hostages, his ex-wife and her employee, for nearly eight hours.
At 3:20pm, the man surrendered himself to the police.
The two hostages, who have escaped without injury, have been taken to a local hospital for observation.
According to ABC, Superintendent Glenn Weir said police efforts to ensure the safety of the women were successful.
“No-one’s been injured which is a great result as far as we’re concerned,” he said.
“The skill of the negotiators and our tactical operators has been shown to be successful … even though it takes a long time and it’s disruptive to the traffic and the local area in the start of the busy summer season.”