Joel Cauchi, 40, fatally stabbed six people and injured at least 12 more in a violent rampage at Westfield Bondi Junction on Saturday afternoon.
NSW Premier Chris Minns said many people ran "towards danger" including Inspector Amy Scott, who shot Cauci dead at the scene.
"To the ordinary members of the public that cornered and confronted a murderer in the Westfield shopping centre, showing what I would call instinctive bravery under terrible circumstances," he said.
"And of course Inspector Amy Scott, who ran towards danger and showed professionalism and bravery and without a shadow of a doubt, saved many, many lives in the last 24 hours.
"We’re very, very grateful for the men and women that stood up in Bondi Junction."
NSW Police Commissioner Karen Webb echoed Mr Minns’ sentiment and commended the state’s first responders for their efforts.
"My thoughts go out to those people that were in the shopping centre, and as the premier has said, showed a great deal of courage yesterday," she said.
"But also to the emergency services and of course, the police officers who responded to this very traumatic thing."
NSW Police Assistant Commissioner Anthony Cooke said the man was known to authorities in his home state.
"We have received no evidence that we have recovered, no intelligence that we have gathered that would suggest that this was driven by any particular motivation, ideology or otherwise," he told reporters yesterday.
"We know that the offender in the matter suffered from mental health."
His family was co-operating with police, though he was estranged from them and lived an itinerant lifestyle.
He had never been arrested before carrying out one of Australia’s worst mass killings.
Six people, five women and one man, were killed in the attack and several others were injured.
Four female victims aged between 20 and 55 and a man, aged in his 30s, died at the scene.
A fifth female victim, 38-year-old osteopath Ashlee Good, died at St Vincent’s hospital on Saturday night.
Dr Good’s nine-month-old daughter was stabbed in the attack and is in a critical but stable condition at Sydney Children’s Hospital.
Also among those killed was Dawn Singleton, the 25-year-old daughter of multi-millionaire businessman John Singleton.
Another victim was architect Jade Young, 42, who worked nearby in Double Bay.
Faraz Ahmed Tahir, 30, a security guard from Pakistan who came to Australia as a refugee, has been identified as the fourth victim, the only male.
Two of the six victims were from overseas and have no family in Australia, Mr Cooke said.
At least 11 others, including nine women and two men were in hospital after suffering stab wounds in the attack.
Mr Albanese yesterday praised the officer involved along with others who came to the assistance of injured Sydneysiders.
"The wonderful inspector who ran into danger by herself and removed the threat that was there to others, without thinking about the risks to herself," he told reporters.
"We also see the footage of ordinary Australians putting themselves in harm’s way in order to help their fellow citizens.
Federal opposition leader Peter Dutton said there was heroism among the horror.
"We thank everyday Australians who helped each other get to safety and those who provided comfort to others in distress," he said on social media.
King Charles said in a statement that he and Queen Camilla were "utterly shocked and horrified to hear of the tragic stabbing incident in Bondi".
The royal couple praised the "bravery of the first responders and emergency services".
Pope Francis also expressed his sadness at the "senseless tragedy" and offered his "spiritual closeness" to all those affected.
Ms Webb said Ms Scott was doing well under the circumstances.
"She showed enormous courage and bravery.
"It was an awful situation ... but it could have been much worse," she said.
The shopping centre is closed and will be an active crime scene for days.
What we know about ...
— Joel Cauchi, 40, moved to Sydney from Queensland in March.
— Known to Queensland authorities.
— Suffered from mental health issues.
— Shot dead by a police officer.
— No evidence to suggest the attack was driven by any motivation or ideology.
— Cauchi’s family is co-operating with police.
The victims
— Six people were killed, five women and one man.
— Two were from overseas and had no family in Australia.
— 17 victims stabbed, 12 remain in hospital.
— Mother of a baby who was also stabbed is among the dead.
— The nine-month-old baby girl underwent surgery and is in a critical condition
in ICU.
What happened
— The incident took place inside the Westfield shopping centre at Bondi Junction just after 3pm on Saturday.
— The man confronted people in the centre, stabbing them with a knife.
— He acted alone and there is no ongoing threat to the community.
— A senior police officer was quickly on the scene and shot the attacker after he refused to drop his weapon.
— About 75 paramedics and doctors attended, including intensive care paramedics, special operations team and special casualty access team.
— The shopping centre remains closed as an active crime scene.
— Police say the investigation will be lengthy and precise.
— AAP