The two women, whose names weren't reported, were rescued from the Brisbane home after they were shackled in a bathroom for at least four hours, the Australian Broadcasting Corp. reported.
A man held the two women captive and was armed.
Police evacuated nearby neighbors and closed down major roads in the area.
At one point two gunshots were heard.
The women were uninjured in the incident, police said.
"The two female persons within the house have been safely recovered," Inspector Sean Cryer said. "They're now being treated by the ambulance, after which time the detectives will speak to them in regards to furthering our operation."
Police discovered the man's body using a remote-operated robot with a camera, ABC said.