Police said the shooting occurred just after 6.40pm near a Jewish community gathering at Bondi Beach, where hundreds of people had assembled for a Chanukah by the Sea event.
The Australian Jewish Association (AJA) has expressed alarm following the incident at Bondi Beach, linking it to long-standing security concerns raised with the government.
The crash killed 42-year-old mother Nancy Lefrançois and her 11-year-old son Loïc Chevalier, who were travelling in a passenger vehicle struck in the collision.