Islamic State claimed responsibility for Friday's attack, but that could not be substantiated and police have not commented on it yet.
The attack during the afternoon rush hour brought central Melbourne to a standstill. While the full chain of events is yet to be established, it is reported that a man burned a auto before starting his knife attack.
Police said officers "initially responded to a report of a auto on fire" in the city centre at 4:20 pm local time, but discovered at the scene that members of the public had been stabbed.
After Khalif emerged from the vehicle, he then stabbed three men - one fatally - before his quest for martyrdom ended with police bullets. He later died in hospital while under armed guard.
"The guy was out of control so I just went into action mode and tried to swipe him with the trolley". As the attacks continued, one policeman shot the suspect in the chest, leaving him in a critical condition. He moved to Australia in the '90s from Somalia, and had a record of "minor" offenses, including marijuana use, some driving offenses and theft.
The 31-year-old and his family were known to counter-terror agencies at a state and national level and were believed to have ties with north African extremist groups.
Khalif's passport was cancelled several years ago after he was noted as one of 300 potential security risks.
On Saturday, as investigators searched the family home, carloads of distressed relatives arrived at the house only to be turned away by heavily armed police guarding the driveway. Clayton said that the public is still advised that the area remains closed as investigations are ongoing at the crime scene.
Police shot and subdued the knife-wielding assailant, who later died in the hospital, Graham Ashton, the chief commissioner confirmed.
"He is known to both Victoria Police and federal intelligence authorities", Ashton said, adding that "there is no ongoing threat that we know of.as I speak to you".
Australia's News.comsaid the slain victim has not been formally identified.
"I'm pretty sure he got stabbed in the face".
One man died and two others were injured after a man stabbed passersby on a busy street in Australia's second-largest city on Friday.
A white sheet covered the victim as he lay on Bourke Street.
"The overwhelming majority of African-Australians in Victoria are law-abiding and condemn any acts that threaten our peaceful, vibrant and multicultural state. that we love so dearly".
Victorian Premier Daniel Andrews led the online praise of the officers and the passers-by who "came to the aid of complete strangers".
Police said they found his pick-up truck full of gas cylinders in what they are now treating as terrorism.
A third person has also been taken to hospital, although the nature of their injuries is not yet known. The police have also ruled out terrorism links.