Armed with a samurai sword, Duy Linh Ho told police to use their weapons on him before charging down the stairs.
He was shot dead seconds after the last of his four children was escorted out of the family home in Brisbane's southwest in July 2019.
Coroner Terry Ryan said that while there were concerning features to the police response, the use of lethal force was justified.
Mr Ho, 41, was suffering from depression and opiate dependency when he barricaded himself in a bathroom and self harmed at the Doolandella residence.
When he emerged the next morning, his partner called emergency services telling them he had been violent and that he was attempting suicide.
Police were also called when Mr Ho refused medical treatment and appeared agitated and verbally aggressive, telling paramedics that he "wanted to die".
His children were asleep inside the home when the incident began and there was no suggestion he wanted to harm them or that anyone was held hostage.
"However, he told police he wanted them to draw their weapons and use them on him," Mr Ryan said in his findings for July's inquest into Mr Ho's death.
After a stand-off, Mr Ho's sister-in-law, partner and children were safely escorted outside.
"There was a rapid change in Mr Ho's demeanour once the fourth child left the home," Mr Ryan said.
Mr Ho then rushed down the stairs toward Senior Constable David Low armed with a broken mirror and the sword.
After ordering Mr Ho repeatedly to drop the weapons, Sen Const Low shot three times.
Mr Ho was hit in the head and torso, dying at the scene.
Sen Const Low told the inquest that he was "scared for my life ... there is no doubt he would've tried to kill me or someone else".
Mr Ryan examined the emergency response at July's inquest.
The shooting was also subject to a Queensland Police Service review.
"The critical factor in the circumstances was the apparent failure by police to tactically withdraw once all of the occupants other than Mr Ho had left the residence," Mr Ryan said.
"It was submitted on behalf of (Mr Ho's partner) that once the fourth child was removed, all officers should have left."
Mr Ryan said the decision to leave officers inside the residence may have escalated the situation but added there was only a brief opportunity to tactically reposition.
"I note that the timeframe between the last child leaving the dwelling and Mr Ho's actions in advancing ...was less than 10 seconds," he said.
Mr Ryan said other concerning features were the officer-in-charge's decision to apprehend Mr Ho and a negotiator's unwillingness - albeit in accordance with QPS policy - to actively engage until a Special Emergency Response Team was present.
It ensured attempts to de-escalate the situation were left to Constable Briohny Granzien, he said.
"She did an exemplary job but should not have been placed in such a pivotal and dangerous position," Mr Ryan said.
However the coroner found the use of lethal force was "justified, proportionate and tactically sound".
Mr Ryan said he accepted police evidence that training had changed to address shortcomings identified in their review of the shooting.
"The steps that have been taken since this incident ...are sufficient to address concerns about the adequacy of the police response," he said.
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