Two men, aged 24 and 25, have been arrested in Sydney's western suburbs for allegedly planning to carry out an attack in the name of terrorist group ISIS.
NSW deputy police commissioner Catherine Burn held a morning news conference to outline details of counterterrorism raids in Fairfield on Tuesday. She said officers found knives, machetes, and what was reportedly a homemade ISIS flag.
"We will be alleging that the two men were well advanced in their preparations," she said. "As a result of the police activities yesterday, a number of items were seized and will be included as part of our evidence in court, and include a video recording, a flag, a machete, and a hunting knife."
NSW Premier Mike Baird praised the actions of police in foiling the "imminent" attack.
The arrests come against the backdrop of Australia's heightened terror-threat level.
Three people died when a lone gunman held cafe-goers hostage in Sydney's Martin Place last year. A coroner's inquest into the "Sydney siege" is ongoing and has found that killed gunman Man Monis was carrying out the attack in the name of ISIS.