It is then believed the man went to another home and demanded a vehicle belonging to a male resident
The resident handed over the keys and the man took off in the white sedan.
Police spotted the stolen vehicle near Tiaro after it crashed through roadworks.
Officers tracked the vehicle as it sped through Gympie and along the Bruce Highway through the Sunshine Coast.
Police used tyre spikes on the Bruce Highway at Parklands to bring the man's crime spree to an end at round 10am.
He was confronted by heavily armed police and was shot during the confrontation.
"The male attempted to run from police but was unsuccessful. He then confronted police with what we believe was the weapon used earlier. At that time he was shot by police," Superintendent Craig Hawkins told reporters.
He was shot in the hip before being struck by a passing car.
The Wide Bay district officer said the gunman was well known to police, who had been actively searching for him.
Eyewitness Julie-Ann Kurikawa told the Courier-Mail the man was "lying on the ground bleeding" and the whole thing was like a "movie scene".