A 12-year-old girl is being cared for by relatives after her parents were slain by a man believed to be her uncle on Queensland's Sunshine Coast.

The ABC has been told the girl ran to a neighbour's house in Yandina-Coolum Road at around 10:00pm (AEST) on Wednesday night telling them two people had been stabbed in the house.

The man was shot by police after he threatened them with a machete at the house.

He dropped to the ground and died several hours later in the Nambour Hospital.

It is understood he was the brother of the man who lived in the house.

When police entered the home they found the bodies of a man and a woman, both aged 43.

Both had sustained horrific injuries.

Neighbours have told the ABC the girl's uncle had been staying with the family for about a year when he was asked to leave.

Key points: Police were called to a property just after 10pm AEST

Police were called to a property just after 10pm AEST A 12-year-old girl is believed to have told neighbours two people had been stabbed

A 12-year-old girl is believed to have told neighbours two people had been stabbed On arrival police were confronted by a knife-wielding man

On arrival police were confronted by a knife-wielding man Police fired shots and the man was injured

Police fired shots and the man was injured He later died as a result of his injuries

A report is being prepared for the coroner.

Neighbours heard gunshots

As police continue to gather evidence and piece together exactly what happened, neighbours have spoken about hearing shots ring out at about midnight.

Jordan Devereux lives across the street and says up to six shots were fired.

"The guy was obviously on the ground shot and you could hear him moaning and groaning, which sounded pretty confronting," he said.

"Still very surprising to have a double murder in the street."

Forensic police outside the crime scene where two people were murdered. ( ABC News: Josh Bavas )

Neighbour Kiri France says she heard arguing in the normally quiet street around 10:00pm.

"Just a little bit of yelling ... and about five gunshots, I think," she said. "It was kind of really cracked the air so I came out here and possibly about 30 seconds later quite a few other people came out.

"That's when we saw the cops just yelling at the guy telling him to stay [still]. We just thought he had been tasered."

Investigation continues

Superintendent Maurice Carless says streets around the crime scene have been cordoned off as the investigation continues.

"The crime scene has a significant area that is being covered and being closely examined, so it's too early to detail exactly where things occurred," he said.

"The responding officers were two male officers.

"Our ethical standards command and the Crime and Misconduct Commission have commenced an investigation on behalf of the state coroner.

"These incidents are tragic for all involved and our thoughts go out to all the families involved in this matter."

Police rally around officer

Queensland Police Union (QPU) president Ian Leavers colleagues have rallied around the officer who fired the fatal shot.

"He's a very decent man - he's been in the police for over 10 years," he said. "He's a family man with children, as was his male partner as well.

"It's been very trying for them but they've cooperated fully with the Ethical Standards Command.

"They have nothing to hide and the Police Union and I support them 100 per cent in their acting in a very professional way.

"I went there to not only support the police officers directly involved, but all their colleagues - this is a very trying time for them at the moment as well."

Premier Campbell Newman has told Parliament his thoughts are with the officers and others involved in the incident.

"Police have had to use lethal force and perhaps there is also a family tragedy that has unfolded as well," he said.

"The men and women who wear the blue uniforms wear them proudly in a true spirit of community service, putting their lives on the line every single hour of the day."