The Irish nationals were charged with attempted murder and will appear at the Byron Bay Courthouse on Thursday.
The arrests came after police made a public appeal for help on Tuesday night, suspecting the duo had fled to the coastal town of Byron Bay.
The Age revealed on Wednesday the ex-detective was believed to have been shot in the face during a dispute allegedly involving tradesmen chasing an unpaid debt, and may not have been the intended target.
On Saturday, police arrested a 29-year-old Point Cook man in the country town of Nagambie, more than 150 kilometres north of the crime scene.
They also arrested a 30-year-old man in Point Cook on Saturday morning.
However, the two men were released a day later without charge.
Mr Morgan, who previously went by the name of Said, was a detective in the NSW police force in the 1990s.
In 1995 he became aware of allegations that his brother-in-law, Mansour Suha, had been molesting three young girls, two of them his young relatives. He then shot and killed Mr Suha in May 1995 at a home in Sydney’s Oakhurst.
In an action described in court as a «Clint Eastwood notion of justice», Mr Morgan emptied his service revolver, shooting the man six times.
«It was bang, bang and then he kept coming forward and bang, bang; before I realised it, the fifth or sixth shot was fired,» Mr Morgan told the court.
On August 1, 1997, a jury rejected the Crown argument that it was a revenge shooting, finding Mr Morgan instead acted out of fear for the girls’ safety.
A jury took 33 minutes to decide his actions were justified. Public debate erupted over the implications of vigilante-style justice.
He was refused reinstatement into the NSW police force.
After the trial, he reinvented himself as a Sydney real estate agent. Ten years after the shooting, in 2005, he told The Sydney Morning Herald he had «worked hard and built a new life» for himself.
«But I’ve only achieved that by learning to leave the past in the past,» he said.
Most recently, Mr Morgan was running Morgans real estate agency and billing himself as «without doubt the Hills number one agent», with a «never say die attitude».
Anyone with information is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report at www.crimestoppersvic.com.au
Simone is a breaking news reporter for The Age. Most recently she covered breaking news for The Australian in Melbourne.
Melissa Cunningham reports breaking news for The Age.
Erin covers crime for The Age. Most recently she was a police reporter at the Geelong Advertiser.