Two men accused of plotting a terror attack in Sydney purchased a large knife hours before they were arrested.
The two accused, Omar Al-Kutobi, 24, and Mohammad Kiad, 25, were arrested on Tuesday afternoon, allegedly hours away from carrying out a terror attack in the name of the Islamic State terror group.
They are charged with undertaking acts in preparation or planning for a terrorist act.
A number of items were seized, including a machete, a hunting knife and homemade Islamic State flag.
Attorney-General George Brandis on Wednesday told parliament the raids carried out by NSW Police and the Joint Counter Terrorism Taskforce were likely "to have prevented harm to innocent Australians and potentially saved one or more lives".
He also revealed the two men had purchased a knife earlier on Tuesday.
"Significantly, police also located a video recording of one suspect kneeling in front of an ISIL (IS) flag, with the knife and machete, making a politically-motivated statement, threatening to undertake violent acts with those weapons," Senator Brandis said.
Senator Brandis said the arrests may not have been possible if not for the lowering of the arrest threshold in relation to terrorism offences from belief on reasonable grounds to suspicion on reasonable grounds.
"The lower threshold allows police to respond in a more dynamic and flexible manner, and the need for the new legislation was highlighted by yesterday's arrests," he said.
NSW Police Deputy Commissioner Catherine Burn said authorities were forced to act quickly after it became apparent an attack was planned for Tuesday as revenge for incidents overseas.
The two accused will appear in Sydney's Central Local Court on Thursday after the matter was adjourned and moved from Fairfield Local Court amid security issues and because of the seriousness of the allegations.
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