Officers were called to a park on Ryan Street in Grafton about 6.30am today after a concern for welfare report.
Police said when they arrived they found and “attempted to engage” with a 32-year-old man.
The man allegedly approached the officers and threatened them with a knife, according to police.
“They engaged with him for a period of time, he threatened them with that knife and he did approach them to the extent that they were threatened and believed they had to discharge their firearms.” Assistant Commissioner David Waddell said.
“Two police engaged with him, a further two arrived but they did not engage with him.”
At that point, he was shot by police, Waddell said.
“They were forced to take some action… Unfortunately in this case [police] had to use their firearms to protect themselves,” he said.
Officers immediately started giving him first aid until paramedics arrived.
He was then airlifted to Gold Coast University Hospital in a stable but serious condition.
Waddell said the call for welfare was made because there were fears the man would harm himself.
The man was known to police.
The officers were uninjured.
A critical incident team will investigate the circumstances of the shooting.
Critical incidents are declared whenever there is an incident involving a NSW police officer that results in the death or serious injury of a person.
The investigation will be independently reviewed.