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Fears supporters of Islamic State were planning to kidnap a random person and carry out a "demonstration killing" prompted Australia's largest ever anti-terror raids, the prime minister has said.
Asked about reports that the planned attack involved a plot to behead a person in Sydney, Tony Abbott said: "That's the intelligence we received.
"The exhortations - quite direct exhortations - were coming from an Australian who is apparently quite senior in ISIL (also known as IS or ISIS) to networks of support back in Australia to conduct demonstration killings here in this country.
"This is not just suspicion, this is intent and that's why the police and security agencies decided to act in the way they have."
More than 800 officers took part in the operation which saw at least 15 people detained and one charged with a serious "terrorism-related" offence.
The suspects had purchased machetes, balaclavas and military fatigues and planned to record the killing to be released on social media, Australia's ABC News reported.
Pictures in the Australian media showed a sword being removed from one of the properties
The early morning raids of homes and businesses in Sydney and Brisbane came just days after Australia raised its national terror threat level to "high" for the first time, citing the likelihood of terrorist attacks by Australians radicalised in Iraq or Syria.
One of the suspects arrested made a brief appearance in court on Thursday.
Prosecutors said Omarjan Azari - who is charged with conspiracy to prepare for a terrorist attack- was involved in an alleged plan to "gruesomely" kill someone, an attack that was "clearly designed to shock and horrify" the public.
Court documents accused the 22-year-old of conspiring with former Sydney nightclub bouncer Mohammad Ali Baryalei, 33, who is suspected to be Australia's most senior member of IS in Syria and Iraq.
Prosecutor Michael Allnutt said the charge followed from the interception of a phone call made in recent days.
Police have also issued an arrest warrant for Baryalei.
Sydney is home to around half of Australia's 500,000 Muslims, with the majority living in the western suburbs where the raids were carried out.
New South Wales Police Commissioner Andrew Scipione said the operation showed the reality of the threat facing Australia.
He said: "You know it is of serious concern that right at the heart of our communities we have people that are planning to conduct random attacks.
"Today we work together to make sure that didn't happen. We have disrupted that particular attack."
Australia, which is due to host the G20 Leaders Summit in Brisbane in mid-November, is concerned over the number of its citizens believed to be fighting overseas with Islamist militant groups.
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