Australian authorities thwarted an "imminent" terror attack, police said Wednesday, after arresting two men and seizing a knife, a machete and a homemade flag associated with the Islamic State group.
Omar Al-Kutobi and Mohammad Kiad were taken into custody during a Tuesday raid in a suburb of Sydney and charged with planning a terrorist act.
New South Wales Deputy Police Commissioner Catherine Burn told reporters that authorities believe the men, ages 24 and 25, were planning to carry out an attack on Tuesday.
"This is indicative of the threat that we now have to live with and which we are now having to deal with," Burn said.
Police also recovered a video during the raid that they said features one of the men discussing an attack.
Australia is participating in a U.S.-led coalition targeting Islamic State militants in Iraq, and raised its terror alert level in September in response to threats at home.
"Regrettably there are people out there, some living in our midst, who would do us harm," Prime Minister Tony Abbott said.