A man arrested by counter-terrorism police over a planned New Year's Eve attack in Melbourne intended to shoot as many people as he could, police will allege.
"The allegations are that he was planning to commit a terrorist act and that he attempted to obtain a gun to do so," Victoria Police Deputy Commissioner Shane Patton said.
"What we will be alleging is that he was intending to use a firearm to shoot and kill as many people as he could in the Federation Square area on New Year's Eve.
"The potential to attack is catastrophic."
The 20-year-old was arrested by at a house in Werribee about 3pm on Monday by Victoria Police, Australian Federal Police and ASIO officers.

Federation Square in Melbourne Source: SBS Arabic24
The practising Muslim was born in Australia, is an Australian citizen and his parents were from Somalia, Mr Patton said.
"The male is one of our high-risk persons of interest. We have been monitoring him for a very lengthy period of time," he told reporters on Tuesday.
The man is being interviewed in relation to the offences of preparing to commit a terrorist attack and collecting documents to facilitate a terrorist act.
It's alleged the man accessed a guidebook produced by al-Qaeda containing information on how to commit a terrorist act and use firearms, guns and handguns and rifles.
Authorities were keen to stress that no firearm was obtained.
But if the attack had been successful the human cost would have been "catastrophic ...horrendous", Mr Patton said.
The man is also believed to be associated with a group of Victorian extremists.
"We won't identify who they are. It is a very small community of extremist," Mr Patton said.
"There is no ongoing threat posed in respect to New Year's Eve, Christmas or any other area."
AFP Acting Deputy Commissioner Ian McCartney said the charges that were expected to be laid were "serious".
"One of the charges carries a maximum penalty of life in prison," he said.
Since September 2014, when the national threat terrorism level was raised to "probable", the AFP has worked with its state and territory partners to thwart a number of plots.
So far, 74 people have been charged as a result of 347 counter-terrorist investigations.
"I would like to reassure the people of Victoria that the teams in Victoria, but also around Australia, are working day and night. They are working 24/7 to keep Australia safe," Mr McCartney said.
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