Police said a large knife and an IS-style flag were found in the raided house
Police in the Australian city of Sydney have charged two men with planning to carry out an imminent attack.
The pair, aged 24 and 25, were arrested in a raid in the western suburb of Fairfield on Tuesday. Details of the alleged plot are not known, but police say a hunting knife, an Islamic State (IS) flag and a video describing an attack were seized.
Australia, which has joined the coalition fighting IS in Iraq, raised its domestic terror alert last year.
The move was a response to growing concern over the impact of militant conflicts in Iraq and Syria.
Sydney is also on alert after a siege at a cafe in the city in December which left two hostages and the gunman dead.
Prime Minister Tony Abbott said the latest arrests were a sign that the IS "death cult" was "reaching out all around the world, including here in Australia, and regrettably there are people in this country who are susceptible to these incitements to extremism and even terrorism".
New South Wales Deputy Police Commissioner Catherine Burn said police believe the men arrested on Tuesday were preparing to carry out an attack that day.
The video found in the raided home "depicted a man talking about carrying out an attack", said DC Burn, adding that the arrests were "indicative of the threat" the security agencies now have to deal with.
No details have been given of the alleged plot, but she said the threat was "consistent with the messaging coming out of IS".
The pair, named in court documents as Omar Al-Kutobi and Mohammad Kiad, were not previously known by police and counter-terrorism officers were only aware of them when they received information on Tuesday, forcing them to act immediately, she said.
They have been charged with undertaking acts in preparation or planning for a terrorist act. They chose not to appear at an initial hearing on Wednesday, where bail was formally refused.
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