Queensland Police stated officers had been approached by a person aged in his 20s on Shute Harbour Highway, Airlie Seaside, round 12.20am.
"The person allegedly threatened officers advancing on them and was subsequently shot," police stated.
Officers tried to assist the person who was taken to Proserpine Hospital however was declared lifeless a short while later.
A criminal offense scene has been established and police are investigating.
The incident can also be being investigated by the Moral Requirements Command and is topic to oversight by the Crime and Corruption Fee.