NSW Police have released a statement and held a press conference following an incident at the Dubbo Centrelink office on Friday morning.
Police have a 28-year-old man in custody assisting them with inquiries after the incident.
About 9.15am the man entered the Centrelink building on Wingewarra Street, and allegedly became involved in a verbal argument with staff.
During the incident the man allegedly threatened staff, claiming he was armed with a weapon.
Police were called and the building was evacuated.
Following negotiations the 28-year-old, who was unarmed, was arrested and taken to Dubbo Police Station.
Inquiries into the incident are continuing.