Live television footage showed burned out wreckage, flames and major damage at the shopping centre and adjacent buildings.
A column of thick black smoke rose into the air as witnesses spoke of an explosion.
“It appears a light plane, which is a charter flight, has impacted the DFO (Direct Factory Outlet) at Essendon Fields,” police minister Lisa Neville said.
The centre was not due to open for another hour and the authorities confirmed no one inside was hurt.
“There’s also debris that’s been left on the freeway,” she added.
A taxi driver called ABC radio and told of the “massive fireball”.
“I saw this plane … when it hit the building there was a massive fireball,” said the man called Jason.
“I could feel the heat through the window of the taxi, and then a wheel — it looked like a plane wheel — bounced on the road and hit the front of the taxi as we were driving along.”
