Prime Minister Anthony Albanese said Sunday would be a day to remember the 15 lives lost in the attacks and stand in solidarity with the Jewish community, with flags to fly at half mast.
The day will mark one week since two Islamic State-inspired gunmen carried out the attack on a Hanukkah event at Bondi Beach.
"We invite people across Australia to light a candle at 6.47pm exactly one week since the attack unfolded as a quiet act of remembrance with family, friends or loved ones," Mr Albanese told reporters in Canberra on Friday.
He also announced a gun buyback scheme, the nation's largest since the Port Arthur massacre of 1996.
"This day is about standing with the Jewish community, wrapping our arms around them and all Australians sharing their grief," the prime minister said.
"It is a moment to pause, reflect and affirm that hatred and violence will never define who we are as Australians."
Planning is also under way for a national day of mourning to be held in the new year.
Earlier on Friday, hundreds of surfers and beachgoers returned to the Bondi waters to pay tribute to those killed in the horrifying mass shooting, Australia's most deadly since Port Arthur.
Just a few hundred metres away from the scene of the massacre, surfers, paddle boarders and others converged in massive circles off the shores of Bondi in a show of solidarity.
"It's just beautiful," Executive Council of Australian Jewry co-chief Alex Ryvchin said.
"It's a gorgeous day and you see that scene - I've seen paddle outs before, but never of that size."
More than $5 million has been donated across various fundraisers, with in excess of 70,000 donations from people in more than 60 countries made to verified pages for victims, GoFundMe said.
This includes $2.5 million for Bondi hero Ahmed Al Ahmed, who wrestled a firearm from one of the gunmen before being shot twice in the arm.
In a video posted to social media, he urged people across the world to "stand with each other, all human beings and forget everything bad ... keep going to save lives".
The Police Association of NSW has set up appeals for two injured officers, including one who could lose his vision permanently, that have reached nearly $750,000.
More than 25,000 blood donations have been made since an appeal for help from Lifeblood in the wake of the attack.
About 90,000 appointments have been booked across Australia in a record-breaking show of support.
"What began as a frighteningly large (need for blood) on Sunday night ... has become a full-scale and national operation to accept thousands of generous gifts of blood," Lifeblood spokeswoman Jemma Falkenmire told AAP.
Those injured in the attack continue to be discharged from Sydney hospitals, with 16 still receiving care.
One is in a critical condition and four are listed by NSW Health as critical but stable.
The Australian National Imams Council has issued a message of togetherness for all preachers to incorporate in their sermons during Friday prayers.
"Islam calls believers to be builders of unity and peace, not agents of division and harm," the council said.
The Jewish Council of Australia, which has been critical of the Albanese government's efforts to address growing anti-Semitism, said grief should not be politicised or used as a weapon to sow division.
"No policy response from the government should lose sight of the human cost of this violence," the council said.
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