'It was just surreal': Woman recounts gunman's home invasion in lead-up to fatal shooting by police

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Tracey Rawlings was watching TV in her country Queensland home on a quiet Monday morning when the barking of her two blue heelers alerted her to a gun-wielding intruder.

"It was just surreal. It was like it was a dream," Ms Rawlings said.

"I said, 'Who are you?' And he said, 'Give me the keys, give me the keys'."

"Then he waved the rifle."

The 61-year-old said the man stole a farm vehicle from her home near Miriam Vale, almost 500 kilometres north of Brisbane.

Less than an hour later, he was shot and killed by police by the side of the Bruce Highway.

Ms Rawlings said her two dogs alerted her to the armed man's presence.(ABC News: Grace Whiteside)

Ms Rawlings said she had previously felt safe on the 80 hectare property

"As soon as he's gone and I've gone to call triple-0, that's when I broke down — I was hysterical," she said.

"I don't know if I ever want to be by myself again."

Ms Rawlings said the man's behaviour was strange.

"He just seemed confused and panicky, he wanted to go," she said.

"I was more scared of him coming back."

The Bruce Highway was closed in both direction for eight hours after the fatal shooting.(ABC Wide Bay: Nikki Sorbello )

How events unfolded, police say

Police said the 36-year-old man, originally from Cairns, had been in central Queensland for the past week.

They said he stole a car containing a long-arm rifle and ammunition from a nearby rural property just before 11am on Monday.

Around 11:15am, he appeared on Ms Rawlings' property and stole a second vehicle.

Just before midday, police spotted the car as they patrolled the Bruce Highway at Colosseum, about 20 kilometres south of Miriam Vale.

Detective Superintendent Darrin Shadlow said a 36-year-old man, believed to be from Cairns, pointed a rifle at police before being fatally shot.(ABC Wide Bay: Lucy Loram)

"Police had not attempted to intercept that utility," Detective Superintendent Darrin Shadlow said.

"The vehicle has pulled to the side of the road and a male person has got out of that vehicle armed with a rifle."

Superintendent Shadlow said three officers told the man to drop the weapon and when he didn't, two officers shot the man, then commenced CPR.

The man was pronounced dead at the scene.

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Superintendent Shadlow said the man may have been involved in other offences in the area in the days prior to the shooting.

"We do know that a male person fitting this person's description also attempted to break into another address and shed ... and had attempted to break into other cars, sheds and gun safes before police approached him on Monday," Superintendent Shadlow said.

He said the officers involved in the shooting were "shaken up" and were being given support.

The Queensland Police Union said it was a "challenging time for police and the community".

"We've had a difficult time of late, we had a police officer involved in the incident at Kilkivan," CEO Ian Leavers said.

Commissioner Steve Gollschewski says the matter is being investigated by the Ethical Standards Command.(ABC News)

Newly appointed Police Commissioner Steve Gollschewski said the latest matter is under investigation by the ethical standards command, overviewed by the crime and corruption commission and the report will go to the coroner.

"What we're seeing here is police were confronted with a situation where they've had to make some decisions pretty quickly, and their training has kicked in."

Police are appealing to anyone with information to come forward.

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