The Australian government has listed the Islamic Revolutionary Guard Corps of Iran as a "state sponsor of terrorism".
The move comes three months after the Australian Security Intelligence Organisation accused the group of orchestrating two separate arson attacks against Australia's Jewish Community.
Foreign Minister Penny Wong on Thursday said the attacks were "unprecedented and dangerous acts of aggression orchestrated by a foreign nation on Australian soil".
"It has no place in Australia," she said.
"The Albanese Government has taken stronger action on Iran than any previous Australian government and will continue to work to keep Australians safe."
Iran denies it is behind the arson attacks on the Lewis' Continental Kitchen in Sydney in October 2024 and the Adass Israel Synagogue in Melbourne in December 2024.
The federal government has passed laws listing the IRGC as a terror sponsor, making it a crime to support, recruit for, train with, fund, or otherwise associate with the group.
Those offences could result in jail terms of up to 25 years.
Attorney-General, Michelle Rowland, said: "The Government is committed to ensuring our counter-terrorism laws are robust and as effective as possible."
"That's why we acted swiftly and decisively to pass legislation to enable the listing of foreign state entities as state sponsors of terrorism.
"These reforms make it more difficult, more risky, and more costly for malicious foreign actors to seek to cause Australia and our community harm."
The IRGC is a key branch of Iran's military and plays a pivotal role in preventing foreign interference in Iran and coups by other parts of the military.
Various Iranian-Australian organisations have long called for the IRGC to be designated as a state sponsor of terrorism.
Many of the groups have protested in Australia as part of the "Woman, Life, Freedom" movement, which was sparked by the death of Mahsa Jina Amini in custody.
She was reportedly detained for not complying with Iran's mandatory hijab laws.
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