Police allege a homemade Islamic State flag, possibly similar to the one shown here, was among the seized items. Photo / Getty
Pair arrested in terror raid alleged to have a machete, knife, homemade Isis flag and video outlining their plot
Two men charged with plotting an "imminent" terror attack on Sydney have not appeared in court, with prosecutors warning there are "clear security issues".
Mohammad Kiad, 25, and Omar al-Kutobi, 24, asked not to be brought up from the cells to the courtroom at Fairfield Local Court, in western Sydney, this afternoon.
Police allege the men were plotting to carry out an attack yesterday and had armed themselves with a machete and a hunting knife. They also made a video detailing their plans.
Prosecutor Michael Allnutt told Magistrate Vivien Swain the matter should be adjourned until tomorrow at Sydney's Central Local Court, when the men were expected to apply for bail.
He said there were "clear security issues" and the men been charged with "a very, very serious offence".
The defendants have asked for an Arabic interpreter.
Authorities arrested the pair in Fairfield, western Sydney, yesterday - the same day they were allegedly planning to maim or kill someone in a knife attack.
A homemade flag, representing the terrorist organisation Islamic State (Isis), was found at the men's home, along with a machete, a hunting knife and a video featuring one of the men making threats.
New South Wales police Deputy Commissioner Catherine Burn told a press conference today that the men had been charged with "acts done in preparation, for, or planning terrorist acts".
Terror plot was 'revenge'
"We will be alleging that the two men were well advanced in their preparations," Ms Burn said.
"We will allege both of these men were preparing to do this attack yesterday ... it was imminent and we acted."
Police allege the plot had been planned as revenge for incidents overseas.
Ms Burn told the press conference that police searched a residence, a car and the men's workplaces.
"A machete, a hunting knife, a homemade flag representing (Isis) and also a video which depicted a man talking about carrying out an attack" were seized, Ms Burns said.
Ms Burn said the alleged plot was "consistent" with Islamic State messages.
"We believe that the men were potentially going to harm somebody, maybe even kill somebody, and potentially using one of the items that we identified and recovered yesterday - potentially a knife."
Neither of the men were on New South Wales police's radar until a member of the public tipped them off.
'No more attacks imminent'
Ms Burn sought to reassure the public no further attacks were planned.
"The type of act is consistent with the messaging coming out of IS but we are of the view that there are no further imminent attacks planned," she said.
"We don't know the exact nature of the target, who was intended, however we do need to be vigilant, whether it is police, military or the general community.
"Everyone needs to remain alert."
Ms Burn strongly urged members of the Australian public to continue to provide information when and where they saw anything suspicious.
Australian Federal Police Deputy Commissioner Michael Phelan said the raids and arrests were an example of how authorities have to be "nimble to adjust to the threat".
The plot was not thought to be related to a previous plan last year to behead someone in Martin Place, in Sydney's city centre - the site of last year's Lindt cafe siege, in which three people were killed.