Australian Federal Police say there were no specific threats made against Prime Minister Tony Abbott by the man fatally shot by police in Melbourne.
Australian Federal Police acting commissioner Andrew Colvin said the investigation was in its early stages but there was no specific threat.
"Police and security agencies in this country do not have any information of any specific threats and we didn't have information of a specific threat on this occasion, " Mr Colvin said.
Authorities say the man was a known terror suspect whose passport was cancelled on security grounds a week ago.
Victoria Police chief commissioner Ken Lay said the man first came in contact with police about three months ago.
"What we saw did cause us some concerns which resulted in us taking some interest in him.
"It's true to say late last week we learned of some behaviours that were causing us significant concern and our interest was greatly heightened."
Earlier, federal Justice Minister Michael Keenan confirmed that the 18-year-old came to the police station following discussions with police, where he “carried out an unprovoked attack”.
“The incident occurred during a police investigation,” he said.
“It appears that the shooting by the police officer was in self-defence.”
Police say the man, who hasn't been identified, had been invited to the Endeavour Hills police station in Melbourne's southeast to talk to members of the Counter Terrorism Taskforce, and came willingly.
The young man then stabbed an Australian Federal Police officer a number of times, before twice stabbing a Victorian police officer, according to police.
Officer undergoes surgery
The AFP officer who was stabbed has already undergone surgery and is reportedly in a serious but stable condition.
"Our Australian Federal Police colleague received more serious injuries. He underwent surgery last night," Victoria Police chief commissioner Ken Lay said.
"He is in a serious but stable condition."
Commissioner Lay also said one of his officers had a nasty slash to his arm and would have surgery on Wednesday.
"We are a little worried about that. (It's) obviously not life-threatening but quite a serious injury."
"These were two young men who turned up to work, doing their job, keeping their community safe, in a very very difficult environment, and came across a person who seemed to me to have one thing on his mind," he said.
In a video statement, Prime Minister Tony Abbott said he had spoke with the families of those injured in the incident.
"Obviously this (act) indicates that there are people in our community who are capable of very extreme acts. It also indicates that the police will be constantly vigilant to protect us against people who would do us harm," he said.
"I've spoken to the wives of both of the officers concerned to assure them of the government's support and of the government's respect for the professionalism with which the police seemed to have acted here."
Mr Abbott is enroute to New York for a UN summit on dealing with foreign fighters in global conflicts.
Officers had 'no choice'
Victoria Police Assistant Commissioner Luke Cornelius said the Victorian officer fired a single shot that killed the young man.
"Our members really had no choice other than to act in the way in which they did. I want to be really clear here: it is really important that the community understands that this is not an exercise in police seeking to single out particular individuals in the community," he said.
"Where we see individuals behaving in a way which causes concern for public safety, we have to reach out to those individuals and do what we can to understand what it is that they might be planning to do."
Man acting alone
It's believed the man was acting alone.
Federal Police Commander Bruce Giles confirmed there was information suggesting the man had recently displayed the flag of the militant group Islamic State, but said the officers had wanted to speak to the man about a "routine" issue.
"It was something that was needed to be spoken about with the individual," Commander Giles said.
"He was invited to come down to the police station; he came of his own free will. He hadn't been monitored for a long time. It had been very early days of this investigation with this individual hence why he drew police interest.”
Police have not commented on media reports that the man had made specific threats against Prime Minister Tony Abbott. They have not confirmed the man's name or occupation, or commented on suggestions he recently had his passport cancelled.
The federal Labor MP for Holt, where the shooting took place, said his community was shocked and horrified by the incident.
Anthony Byrne said the conflict in the Middle East was having a bearing "literally at my community's doorstep". Tuesday's attack at the Endeavour Hills police station was proof that lifting the terror threat level was justified, he said.
"This threat is significant. This threat is real," Mr Byrne told reporters in Canberra.
"I'd like to say to my electorate, to my community, to my country - keep calm, keep resolve. The fact is these people, they want to interfere with our way of life, the way we do business. We cannot let them win."
Mr Keenan has urged Australians to remain calm following the incident.
"Whilst this is a horrible incident, we do need to remain calm and go about our daily lives. The police are our front line against people who wish to do us harm," he said.
"It is exactly this type of bravery and dedication shown by these officers that will continue to keep our communities safe and secure."
Islamic council calls for investigation
Victoria's Muslim communities have called for an investigation following the shooting.
The Islamic Council of Victoria expressed "deep sorrow" over the incident but said the incident highlights issues such as alienation and disaffection, and the government needs to address those matters.
"There needs to be a full and objective investigation into this incident to ensure that such a tragedy is never repeated," the council said in a statement on Wednesday.
"This tragedy highlights the real cost of a failure to deal with these serious issues and why we have made numerous calls on the Australian government to deal with the root causes of alienation and disaffection of people such as this."
The council said it would support the man's family.
"There will be many questions that they will want answers to and in the fullness of time we expect that the events of last night will become clearer," the council said.
Victorian Premier Denis Napthine says the fatal shooting of a teenage terror suspect was a tragic and isolated incident which should not be allowed to divide the community.
Dr Napthine says the incident is not about faith or ethnicity, but the alleged behaviour of one individual.
"It is critical that one particular group is not singled out or targeted."
Dr Napthine said the state had a harmonious, diverse multicultural and multi-faith community and "we shouldn't let a single incident divide that".
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