Police were called to a domestic dispute at a property at Yengarie, near Maryborough on Queensland's Fraser Coast, about 5.45pm on Friday.
It is alleged the 45-year-old approached a group of 10 officers attending the call-out and shot at them.
A first-year constable sustained a gunshot wound to the leg.
Police said two women and two children at the residence at the time were later able to leave the premises of their own accord.
Specialist police including forensic officers, negotiators and a dog squad team attended the scene at 9.20pm.
A search of the property located the man believed responsible for discharging the firearm, deceased in a backyard shed.
Power was cut to more than 100 surrounding homes for several hours over safety concerns.
The 36-year-old wounded officer was flown to Royal Brisbane and Women's Hospital in a stable condition.
"The gunman fired multiple rounds," Acting Superintendent Brad Inskip told reporters in Maryborough on Saturday.
"One has hit a constable in the leg, causing significant injuries.
"The other officers on the scene have dragged that officer to a place of safety."
They applied first aid, including a tourniquet to his leg, before carrying the stricken colleague a further 100m clear.
A police spokesperson said the wounded officer was receiving expert medical care and his immediate family had been notified of the event.
A police critical incident team was also assisting.
Supt Inskip was unable to confirm reports the weapon used in the shooting was a high-powered semi-automatic.
"There's information around that, but we can't confirm that 100 per cent, so that will come out later on the investigation," he said.
"I can say, though, that the 45-year-old male was not ... a recorded licence holder."
Supt Inskip said there was no indication the women and children who fled the house had been held as hostages.
The incident will be investigated by the Ethical Standards Command, with oversight by the Crime and Corruption Commission, reporting to the coroner.
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