Fourteen people were injured when a man, 51, ploughed his car into Hijab House in Greenacre, in Sydney's south-west, about 3pm on Thursday afternoon.
The driver was interviewed by police but was released without charge on Thursday evening.
However, police announced on Friday afternoon that he had been re-arrested at home in Greenacre and was expected to be charged.
It comes as mobile phone video emerged appearing to show a bearded man in a black T-shirt scuffling with the man immediately following the crash.
First responder Dr Nafi Musa said he saw that man punching the driver - who did not fight back but raised his fists in a protective stance.
'(The man) was like, angry, and punched him,' the GP told Daily Mail Australia on Friday morning.
image class="left" url= Several women suffered cuts from the glass at the front of the store exploding open when the car ploughed through
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image class="left" url= image class="left" url= Harrowing scenes: Mobile phone footage captured a man, centre, emerging from the Mitsubishi SUV after it shook violently.
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Local GP Nafi Musa, right, rushed to help the injured
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image class="left" url= Police, paramedics and witnesses immediately after the car rammed the store
'It looked like he was trying to retaliate or maybe a shop belongs to someone's relative.
'When I saw him, he was protecting himself, the driver, he was not fighting back.'
Dr Musa said a woman screamed something along the lines of 'it was an accident, it was an accident ...
it was not intentional so leave him alone'.
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Video shows the man then leaving the store as a woman yells - including 'get him out' - while other witnesses ask how many people were in the car at the time of the crash.
A New South Wales Police Force spokeswoman said it hasn't received reports about punches being thrown.
Dr Musa works two doors down from the store.
He rushed out of his GP clinic after hearing a huge explosion while treating his final patient of the day.
'There were a lot of people lying, in pain, shock, screaming,' he said. If you adored this post and you would like to get even more details regarding Next kindly visit our web-page.
Dr Musa said he first went to check whether anyone was trapped underneath the car, but thankfully no one was.
He treated a man in his 20s who was struck in the thigh by the car as well as three women bleeding from cuts he attributed to broken glass.
The doctor said the driver just sat in the car and didn't do or say anything, and was convinced he 'looked normal'.
image class="left" url="" Shocked locals console one another after the brutal crash this week.
