Police have charged two men arrested during counterterrorism raids in Sydney's west yesterday.

Key points: Police yesterday raided homes in six suburbs

Police yesterday raided homes in six suburbs Two men arrested during those raids have now been charged

Two men arrested during those raids have now been charged Police said yesterday it was the "16th disruption" of an alleged terror plot since 2014

Radwan Dakkak, 23, has been charged with being a member of the terrorist organisation Islamic State.

The Toongabbie man was refused bail and is expected to appear before Bankstown Local Court today.

A 30-year-old man arrested during the raids yesterday has been charged with a fraud offence.

He was granted bail and will appear before Burwood Local Court later this month.

Isaak el Matari, 20, was also arrested yesterday and is yet to be charged.

The counterterrorism raids in Sydney's west on Tuesday targeted suburbs including Canada Bay, Chester Hill, Greenacre, Green Valley, Ingleburn and Toongabbie.

Police have been interviewing Mr el Matari and will allege he was planning an attack on prominent buildings across Sydney such as churches and police stations.

Police had monitored Isaak el Matari since he returned from Lebanon. ( Facebook )

AFP assistant commissioner Ian McCartney said Mr el Matari had been monitored since returning from Lebanon last year.

Yesterday's raids prompted the Federal Government to seek greater powers to prevent Australians allegedly involved in terrorism from returning home for two years.

Home Affairs Minister Peter Dutton said he planned to introduce legislation into the House of Representatives on Thursday.

Jared Li witnessed the police raid in Toongabbie yesterday, and said: "I just heard yelling, and police going 'police, don't move'."

"I knew the kids, they were my good friends in primary school, they were pretty close but we kind of separated after a few years."

Neighour Graham Banks, also saw the raids unfold in Toongabbie.

"Waking up this morning the whole cul-de-sac was full of cars, we had police running backwards and forwards and all of a sudden these massive police vans turned up," he said.

"It's just such a massive police presence."