The drama unfolded at 2.40pm this afternoon when an 18-year-old girl called police to the mansion in Burrawong Avenue, Mosman 'following discovery of a suspicious device'.
It was not clear how the device came to be strapped to the girl but it is understood she did not place it there herself.
A senior police police officer described the device as an unusual 'collar bomb' which has never been seen before in Australia.
He said they believed it was an extortion attempt and that the initial details of the situation were being conveyed to police via the girl's father.
The girl, who is part of one of Sydney's wealthiest families is understood to be 'absolutely petrified'.
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