Ihsas Khan being taken into custody on Saturday after alleged stabbing in Minto. Mr Greenhalgh was then allegedly stabbed several times with a large knife, suffering near-fatal wounds to his hands and body. He had to run for his life into a neighbour's home before Mr Khan tried to smash his way in through a glass door while shouting "Allah Akbar". Sharon, a local resident who didn't want her surname published, watched as Duyen Phan, who runs a salon in her garage, barricaded herself and Mr Greenhalgh inside the home. Police lure? Deputy Commissioner Catherine Burn said it's possible that Mr Khan, who lives metres away from the site of the incident, attacked the stranger in an attempt to lure police and attack them.

When officers tried to arrest him outside the Ohlfsen Road home, he allegedly attempted to stab an officer through the window using a large knife. Police point Tasers at Ihsas Khan as he sits on the ground. Dramatic photos obtained by Fairfax Media show the moment three officers used Tasers to subdue him before bundling him into a van. Ms Burn said investigators have found information to suggest Mr Khan had planned to commit an attack on Saturday that was inspired by the so-called Islamic State. Minto victim Wayne Greenhalgh with wife Bronwen. Credit:Facebook

"We know that this person has strong extremist beliefs inspired by ISIS. What made him actually act yesterday we don't know," she said on Sunday. "There was clearly some planning yesterday that we do know about and that only came to light post the incident." Blood splatter is seen on the road near where the alleged attack took place. Credit:Wolter Peeters "This clearly was a very volatile, very violent situation that police and the members of the community were confronted with." 'Never hurt a fly'

Mr Greenhalgh was well-known around the neighbourhood and was often seen out walking his dog. Police are investigating after a man was stabbed in Minto. "Everybody knew Wayne. He would say hello to anyone," said one local resident. "He'd never hurt a fly but I'm sure would fight till death to protect anyone." He was taken by ambulance helicopter to Liverpool Hospital in a critical condition on Saturday. His condition improved to serious on Sunday. The attacker allegedly chased the victim into the salon and tried to smash his way in Credit:Wolter Peeters

Police believe Mr Khan, who also lives in Ohlfsen Road, didn't know his victim but Ms Burn said he had "formed some views" about him in the immediate lead-up to the attack. Mr Greenhalgh's wife Bronwen said Mr Khan had approached them earlier in the day with a Koran in his hand. Residents gather after a man was arrested for allegedly committing a terrorist act. "We thought he was going to ask us something and then he just turned around and went back home," she told Channel 9. Mr Khan had come to the attention of police before. However, he was not on a terrorism watch list and was not considered "front and centre" of the authorities' growing list of major investigations.

Fairfax Media understands local police had been called on two occasions when Mr Khan abused and threatened people in public for their non-Islamic behaviour. He was also charged with maliciously damaging property when he destroyed an Australian flag in 2013 yet the matter was dealt with under the Mental Health Act. Ms Burn said Mr Khan was not connected to any local or international terror groups. 'Zealot' Police sources told Fairfax Media that Mr Khan is a hardline religious zealot and has serious mental health issues including schizophrenia.

When police searched his family home on Saturday night, they found an electronic copy of Islamic State's magazine Dabiq and evidence he had been searching for extremist YouTube videos. Fairfax Media has been told that in an interview with police, Mr Khan said he knew the leader of Islamic State and believed he was justified in killing people to protect and exact revenge for Sunni Muslims. "He said he wanted to do the worst he could do," a police source said. He told police he didn't know Mr Greenhalgh but "disliked him" for reasons unknown. The attack has underscored the challenges facing authorities as they grapple with rapidly radicalised lone wolves who are not on their radar until tragedy strikes.

"This is the new face of terrorism. This is the new face of what we deal with," Ms Burn said. "There is an individual who is known to police for some matters and... for whatever reason becomes inspired to act. They are able to get some basic capability and act." One resident on Ohlfsen Road, who asked not to be named, told Fairfax Media Mr Khan had stood outside her home a few days ago yelling at her in Arabic. Another resident said she saw him in the middle of the night pushing a wheel and axle and walking in and out of traffic. "It could have been any of us," the resident said. "None of us can believe it." Mr Khan chose not to appear in Parramatta Bail Court on Sunday and he was refused bail.

"Police would like to reassure the community there is no ongoing threat in relation to this incident," a statement said. 'Shoulder to shoulder' Prime Minister Turnbull drew a connection between the 9/11 attacks in the US and Saturday's alleged attack in Sydney with its ISIS or ISIL inspiration. "We stood then as we stand today shoulder to shoulder with free nations in the battle against terrorism," he said.

The 9/11 attack was elaborate and had been months in the planning, Mr Turnbull said, whereas the Minto attacked was the latest of an increasingly prevalent number of lone wolf attacks. "At one level they seem very different, 15 years apart, different events. But connecting them both is a violent Islamist ideology which perverts the religion of Islam and seeks to destroy and threaten our way of life," he told a media conference, adding the heroism of those on the scene also linked the two events. "The terrorist threat is described as probable. We saw recently a call by ISIL in their magazine for attacks in Australia. We can't say whether that particular call inspired this individual," Mr Turnbull said. "Intelligence is absolutely critical, it is more important than ever, so I want to say to all Australians that if you see or become aware of something suspicious or unusual, if you know something, or believe somebody could pose a threat to the community, please call the national security hotline. New anti-terror laws

Attorney-General George Brandis said on Sunday the attack appeared to be ISIL-inspired but the man seemed to have been acting alone. Senator Brandis said two new anti-terror laws, which had been in development for some time, would be brought to Parliament this week. One would create a new category of control order for young people aged between the ages of 14 and 18. "At the moment, the minimum age at which a control order can be applied for is 16, but sadly we have seen terrorism events perpetrated in Australia by people as young as 14 years of age," he said. The other piece of legislation was a criminal code amendment for high-risk terrorism offenders, which would provide for a uniform, nationwide regime of post-sentence detention.

In effect, the law would allow people convicted of terrorism offences, who have served their prison term but are judged to be unreformed and still determined to carry out terrorist actions, to be detained, potentially indefinitely. "We cannot allow and we will not stand by to allow our society to be threatened by people of that kind," he said. Loading Under the proposal, the Attorney-General would apply to the Supreme Court in the state where a person is detained for a post-sentence detention order. The court would have to be satisfied on the basis of admissible evidence there was a high degree of possibility that a person could re-offend. - with Emma Partridge, Han Nguyen