The first of the funerals for victims of the Bondi Beach shooting has taken place in Sydney, with thousands gathering to mourn Rabbi Eli Schlanger.

He was among 15 people killed when two gunmen opened fire on a festival marking the first day of Hanukkah. Australia's prime minister said that the attackers appear to have been inspired by Islamic State (IS) group.

Rabbi Schlanger, who was known as the "Bondi Rabbi" and had helped organise Sunday's event, was born in the UK. His wife gave birth to their fifth child just two months ago.

Rabbi Levi Wolff, who opened the service, said his death as an "unspeakable loss" for the community, the Chabad of Bondi and "the entire Jewish nation".

"Eli was ripped away from us, doing what he loved best," he said.

"Spreading love and joy and caring for his people with endless self-sacrifice in his life and in his death, he towered above as one of the highest and holiest souls."

He was mourned by his father-in-law as a person beloved by the community. The 41-year-old was "my son, my friend, my confidant," Rabbi Yehoram Ulman told the congregation at the Chabad of Bondi.

"My biggest regret was, apart from the obvious, to tell Eli more often how much we love him, how much I love him, how much we appreciate everything that he does and how proud we are of him," Rabbi Ulman said.

"I hope he knew that but I think it should have been said more often."

Ulman also urged Jewish people not to hide in the aftermath of the attack and said that on Sunday night - the final night of Hanukkah - they would continue a 31-year-old tradition, and light the final candle on Bondi Beach.

"All the rabbis together, under the banner of our Chabat house of Bondi, to which Eli dedicated his life, we are going to gather in Bondi Beach," he said.

The funeral of Rabbi Yaakov Levitan is also expected to take place on Wednesday afternoon, while the funeral of 10-year-old Matilda, the youngest victim, is to take place on Thursday.

Speaking to reporters in Bondi on Wednesday, Matilda's father praised lifesavers, bystanders and police officers who came to their assistance as they struggled to save their daughter's life, and a woman who helped their younger daughter, Summer.

"I must say the biggest thank you to the lady that saved Summer," he said. "I don't know who she was but she literally hugged her for the whole ten minutes of shooting."

Opposition leader Sussan Ley, New South Wales Premier Chris Minns, former prime minister Scott Morrison and Israeli Ambassador Amir Maimon were among those attending Schlanger's funeral.

Anthony Albanese was not present. Asked on ABC NewsRadio about his absence, the prime minister said, "I would attend anything that I'm invited to. These are funerals that are taking place to farewell people's loved ones."

The Jewish community has criticised Albanese for not taking enough action on antisemitism.

The prime minister defended himself against those accusations on Wednesday, telling ABC NewsRadio he had taken a series of measures including appointing the country's first antisemitism envoy, toughening hate speech laws and increasing funding for social cohesion projects and Jewish institutions.

He also said that one of the two men accused of carrying out Sunday's attack would be charged later on Wednesday, although NSW Police Commissioner Mal Lanyon later said this may depend on his medical condition.

"It's important he has appropriate cognitive ability. For his fairness, we need him to understand what is exactly happening," he told reporters in Sydney.

Naveed Akram has been charged with 59 offences, including 15 counts of murder and one of committing a terrorist act, according to the New South Wales Police.

Akram also faces 40 charges of causing grievous bodily harm with intent to murder, as well as one charge of causing a public display of a prohibited terrorist organisation symbol.

His father, 50-year-old Sajid Akram, was shot dead.

The attack was the country's deadliest shooting since 1996.

Two police officers were critically injured in the shooting and police on Wednesday confirmed that one of them had lost the sight in one eye as a result.

Jack Hibbert, 22, had only been in the police force for four months when he was shot, police said in a statement. During the attack he had "responded with courage, instinct, and selflessness, continuing to protect and help others whilst injured, until he was physically no longer able to."

The second officer, constable Scott Dyson, underwent further surgery this morning and is in a critical but stable condition, Lanyon added. (BBC)

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