A Melbourne teenager who remains in custody on a terror charge was allegedly prepared to die, had called police "dogs" and wanted to fight "on their doorstep".
A court has also heard Sevdet Ramadan Besim, of Hallam, wrote what police called a "martyrdom" note just hours before he was arrested in anti-terror raids on April 18.
The note explains his plans to commit a terror attack, quotes a number of verses from the Koran and gives his family instructions on how to set up his grave, federal agent Denis Scott told the Melbourne Magistrates Court on Tuesday.
A pledge to the leader of Islamic State was also found in Besim's possession, Mr Scott said.
Besim, 18, and co-accused Harun Causevic, 18, of Hampton Park are both charged with planning a terror act, which carries a maximum penalty of life in prison.
The alleged plot involved running a police officer over with a car on Anzac Day, beheading him with a knife then going on a violent rampage that would end in Besim's death, according to an affidavit tendered in court.
Besim was denied bail by magistrate Suzie Cameron on Tuesday.
She said despite undertakings by Besim's mother and father to disconnect the household internet, dispose of Besim's BMW and provide 24-hour surveillance, it was the underground nature of his behaviour that made it so difficult to police.
Even though Besim has a close relationship with his mother, she had no knowledge of his radical ideas and behaviour, Ms Cameron said.
Ms Cameron also said communications intercepted by police, and relied on by the prosecution in opposing Besim's bail application, were "alarming".
Besim is alleged to have told a UK teen, who is also facing terror offences, he had the weapons and the will to carry out an attack on police in Australia.
"I'm ready to fight these dogs on their doorstep," Besim told the UK teen, police allege.
Besim did not appear to know the UK teen was only 14 years old, Mr Scott said.
Besim is also alleged to have said, "The more equipment I'm provided with the better, but I'm ready to go with a knife in my hand".
A "Rambo" knife with a 40cm blade and a tactical knife were found in Besim's car, Mr Scott said.
During the bail application, defence barrister George Giorgiou asked Ms Cameron to impose strict conditions on Besim.
Prosecutor Andrew Doyle said given the nature of allegations against Besim, conditions requiring him to report to police potentially heightened the risk he would offend if released.
Besim was remanded until August when he and Causevic will return to court.
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