Police made an emergency declaration under the Public Safety Preservation Act (PSPA) and cordoned off a large area surrounding the device at 12.30pm.
The exclusion zone encompasses David Low Way from Podargus Parade to Woodland Drive, including Martin Street, Avocet Street, Peregian Esplanade, Parakeet Crescent, Egrer Street, Teal Street, Currawong Crescent, Osprey Avenue, Tern Street, Garnet Street, Ibis Street, Pelican Street, and Kingfisher Drive.
Specialist police are in attendance and residents are advised to stay indoors unless notified by police.
Members of the public are urged to avoid the area.