"Local uniform police attempted to intercept a vehicle with the two men on Old Barnawartha Road, near Richardsons Bend Camping Ground on Wednesday evening," Victoria State Police said in a statement.
"The driver rammed the police vehicle and both occupant got out of the car armed with an axe and a knife."
The two men were shot after they were confronted. They were rushed to nearby hospitals.
The Victoria Police said the accused were aged 19 and 30. They are believed to be brothers with possible links to organised crime gangs.
Despite the initial involvement from the CTC, Victorian Police said the incident was "not being treated as a terrorism-related attack and there is no ongoing threat to the community".