Mr Baird represented the Liberal Party in the NSW lower house from 1984 to 1995 before moving to the federal stage in 1998, serving in the House of Representatives in the seat of Cook until leaving politics in 2007.
He was the father of former NSW premier Mike Baird and television presenter Julia Baird, as well as businessman Steve Baird.
Former prime minister Scott Morrison, who replaced Mr Baird in the seat of Cook, paid tribute to his friend on Friday night.
"To me Bruce was a giant, a mentor and a friend who celebrated and lived out his strong Christian faith, loved his family served his country, his state and our community in the Shire," he wrote.
"God bless you Bruce and your memory my dear and beloved friend, because you were such a rich and great blessing to all of us."
Prime Minister Anthony Albanese said Australia had lost "a real gentleman and a true parliamentarian".
"Tellingly, the respect and admiration for Bruce knew no political boundaries," Mr Albanese said in a statement.
"Our hearts go out to his adored children Julia, Steve and Mike.
"And may Bruce Baird rest in a peace as beautiful as the peace he felt every time he stepped into the surf at Manly."
The NSW Liberal Party described Mr Baird as a party stalwart and greatly respected politician.
"We offer our deepest condolences on behalf of all members to his family at this difficult time," the party said.
Other members of the party shared their own tributes, including shadow treasurer Tim Wilson, who called him a generous and larger-than-life figure, and former North Sydney MP Trent Zimmerman.
"There are very few people who have contributed so much to public life as Bruce Baird. I am just devastated that he has left us when he had so much more life to live," Mr Zimmerman wrote.
"I am proud to have worked with Bruce. I am even prouder to call him a friend."
NSW Liberal MP Matt Cross remembered Mr Baird in a social media post, writing that he was devastated to learn of his death.
"Bruce was a longtime mentor to me, and to so many others. It's hard to comprehend his passing," Mr Cross wrote.
"I'll miss his friendship, mentorship and guidance."
Opposition Leader Kellie Sloane extended condolences on behalf of the NSW Liberals to the entire Baird family in a statement.
"Bruce was also a deeply respected member of the Liberal family and his contribution to our party continued well beyond his time in elected office, serving as a mentor and guide to many people coming through the party's ranks," she said.
"Bruce will be greatly missed."
Former Labor minister Craig Emerson also offered condolences, describing Mr Baird as a "truly lovely and smart bloke".
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