Sydney terrorism plot thwarted as Islamic State flag seized

SYDNEY — Australian police said they thwarted a terrorism plot after arresting two men in Sydney and seizing a machete, a knife and an Islamic State flag.

The two men appeared in court today (Feb 11) and were charged with planning an act of terrorism, New South Wales Deputy Police Commissioner Catherine Burn told reporters in Sydney. The men weren't on police's radar and their intended target hasn't been established, she said.

"This is indicative of the threat that we now have to live with and we are having to deal with," Ms Burn said. Officers seized a video in the raid yesterday in the western Sydney suburb of Fairfield, in which one of the men indicated the attack was being planned for that day. Asked about media reports the suspects planned to carry out a beheading, Ms Burn said it was unclear what they intended to do.

"This is a serious problem," Prime Minister Tony Abbott told parliament in Canberra today, adding that about 90 Australians were known to be fighting in the Middle East for Islamic State, or ISIL. "I fear it will get worse before it gets better."

Police found a "video recording of one suspect kneeling in front of the ISIL flag with the two knives whilst making a statement in Arabic", Mr Abbott said.

The government raised the nation's terrorism alert to the highest level in a decade in September, citing the threat posed by local supporters of Islamic State militants. Authorities increased patrols at transport hubs and landmarks in Sydney in December after a 16-hour siege in a city cafe ended in a shootout that left two hostages and the gunman dead. BLOOMBERG