Sergeant Mark Johnston and Senior Constable Helen McMurtrie spoke to Eric John Newman, 74, as he stood on the balcony of his Glen Innes home when they responded to reports of an assault about 11pm.

Police believe the man fired a shot which grazed the side of Sergeant Johnston's face and then hit Senior Constable McMurtrie in the neck. A third police officer, a female probationary constable, was not injured.

The three colleagues took cover in a police car and helped treat their injuries before they heard what was believed to be a second gunshot.

Specialist police who were called to the property, on the Church Street section of the New England Highway, found the Mr Newmans'  body at the home shortly before midnight.

Lesley Ann Newman, 59, was found nearby with minor injuries. She is assisting police with their inquiries.

Western Region Commander, Assistant Commissioner Geoff McKechnie said police were "not looking for anyone else in regard to this matter".

"Our investigations thus far indicate that's where the shot came from, where that male was standing," he said.

The injured officers were taken to Glen Innes Hospital before they were airlifted to the Gold Coast Hospital.

Sergeant Johnston is in a stable condition. Senior Constable McMurtrie had surgery and has been placed in an induced coma.

"The bullet missed her artery by a millimetre," said her father Barry McMurtrie.

"We're very mindful that last night we could have lost two officers very easily here in this incident," said Assistant Commissioner McKechnie.

"Thank goodness we haven't and the whole police family wishes them both a speedy and full recovery from their injuries.

"The way the officers conducted themselves as a team, as a unit, to extricate themselves from that very dangerous situation is, as a commander, quite gratifying to see them look after each other that way, to help each other resolve that situation."

Acting Commissioner Gary Worboys said while the incident was "subject to a critical incident investigation" he sent his well wishes to the "brave officers" involved.

"As an organisation, we are rallying around the officers and providing any support they need to assist in their recovery and we look forward to welcoming them back to work when they are ready," he said.

"Incidents like this highlight the very real dangers of policing and I thank everyone in the community for their support and well wishes."

The Church Street section of the New England Highway was closed in both directions between Oliver Street and Heron Street as forensic investigators scoured the street.

A critical incident investigation team from nearby Oxley local area command will investigate the circumstances surrounding the stand-off.

That probe will be overseen by the police's professional standards command. A report will be prepared for the coroner.

The NSW Police Association described the shootings as "horrific" and said union officials were helping the involved officers, who were attached to New England Police District.

"[Two members] have been seriously injured & we will be supporting them & their families," a social media post said. "Please keep these officers in your thoughts."

The association's acting president, Kevin Morton, said such incidents were "a stark reminder of the dangers our police officers face every day in order to keep our community safe".

“Our thoughts are with the officers and their families at this incredibly difficult time. I’m sure the whole community is with us when we say we wish these officers a full and quick recovery.

“The association is currently providing all the assistance we can to the officers, their families and also to their police colleagues.

“Policing is a dangerous job. Incidents like this are a reminder for all of us of what a great job our police do and the risks they take every day."

An online fund-raising campaign set up by the union's charity arm, NSW Police Legacy, to help the officers involved in the attack had raised more than $4700 by 11am.

That money would go towards the officers' rehabilitation in the wake of the "shocking" incident, a message on the fund-raising page said.

"We will be there to support them as they move through this traumatic experience and into the future."