Mr el Matari, who was arrested at his Greenacre home, had been under police surveillance since returning to Sydney from Lebanon 12 months ago. "We will allege in court that the man was in early-stage preparations and was someone who had expressed intentions to carry out a terrorist attack in Australia," Australian Federal Police's national manager of counter-terrorism, Ian McCartney, said. Police raid the Chiswick Street home on Tuesday. Credit:James Brickwood "Police station, defence establishments, embassies and consulates, courts and churches [were all potential targets]," he said. "This man had not moved to finalise his plans to finalise a terror attack."

Police said Mr el Matari had only become of interest to Australian authorities because of his trip to Lebanon. "Before he travelled overseas to Lebanon, he wasn't of interest to Australian authorities. We had concern once he returned to Australia. Movements have been monitored since he returned to Australia," NSW Assistant Commissioner Mick Willing, the Counter Terrorism and Special Tactics commander, said. Tuesday's raid was the 16th alleged planned terror attack police have foiled since the terrorist threat level in Australia was elevated to "probable" in 2014. "There are still people who wish to do the community harm. Their actions are criminal and they represent hate and terror," Mr McCartney said.

Home Affairs Minister Peter Dutton said the case bolstered the argument for new laws the government plans to put to Parliament this week that would let authorities block Australians deemed a terrorist threat from returning from overseas for up to two years. Mr Dutton said the government could not be certain how many Australians who supported Islamic State might still be at large in the Middle East. "Even though there’s been an enormous disruption and the taking over of areas … nonetheless there are many people who still are involved in different theatre skirmishes, regroupings. It may be the case that some Australians we assume have been killed in the theatre of war may not have been." Police allege the pair arrested on Tuesday had planned to import firearms and explosives to carry out the attacks. "They were starting to reach out to people overseas," Mr McCartney said.

A woman returns to the house in Chiswick Street, Greenacre, where Isaak el Matari lives, on Tuesday afternoon. Credit:James Brickwood Mr el Matari also allegedly had plans to go to Afghanistan to pledge allegiance to, and fight for, the Islamic State, he said. He had a visa and a plane ticket to Afghanistan, and planned to purchase a firearm upon arrival, police alleged. "Through these activities, he'd sworn allegiance to IS," Mr McCartney said. "There was a domestic plan at the same time." Mr el Matari, who lives with a woman and two children, is expected to be charged with one count of preparing for a terrorist act and one count of being part of a terrorist organisation.

He will also face charges under the so-called foreign fighters legislation designed to stop Islamic State sympathisers from going to the Middle East to fight. Horrified neighbours at the home in Chiswick Street, Greenacre, where Mr el Matari had lived for several months, told the Herald they were in shock. Police officers raid Mr el Matari's home. Credit:James Brickwood "It's very terrible, what we heard this morning. My four-year-old daughter is very scared. She asked what is going on," one neighbour said. Another said she wanted to move. "I'm disgusted, I don't want to live here any more. It's terrifying, you don't feel safe. It's just shocking," she said.

Mr Dakkak, from Toongabbie, is expected to be charged with being a member of the Islamic State. The third man arrested in the raid, Mr Tebya, will face unrelated charges of defrauding Centrelink. Mr Tebya was granted police bail to appear in Burwood Local Court later this month. Police also had in place an "escalation plan" if any of the attacks had progressed, Mr Willing said. "In matters of this type, public safety is paramount. We had appropriate resources briefed and ready, including tactical resources and the like," he said.