Video posted on social media by 9News political reporter Fiona Willan showed people gathering on the lawns of Parliament House after they were evacuated amid the sounding of alarms.
Firefighters were called to the building.
A thick cloud of smoke could be seen over the closely guarded site and there were reports of a smell of burning rubber.
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People were let back in after firefighters gave the all-clear.
The cause of the smoke is not yet known.