The man shot two police officers to death and seriously injured a third at a farm outside the village of Porepunkah in the Australian Alps on Tuesday morning.
The hunt for the man has been going on all night until Wednesday, local time, but he has not been found yet, reports ABC News.
The man is believed to consider himself outside the normal society and does not follow common laws or police orders. He is said to have opened fire when ten police officers came to his farm for a search.
They were met by the perpetrator and murdered with premeditation, says Victoria's police chief Mike Bush.
He was heavily armed and could escape into the forest. He was hunted but managed to flee.
On Tuesday evening, the approximately 500 inhabitants of Porepunkah received an SMS from the police, in which they were warned about the man and asked to stay indoors.
He is obviously a very dangerous person and must be caught. That's why we have called in all available resources, says Mike Bush.
Porepunkah is located about twelve miles southwest of Mount Kosciuszko, the highest mountain on the Australian mainland. The area is very sparsely populated but is located along a popular tourist route through the mountain area.