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Man arrested on terror offences after AFP counter-terror operation in NSW town of Young

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A man has been charged with terrorism-related offences after he was arrested in an Australian Federal Police raid in the NSW town of Young on Tuesday.

Haisem Zahab​, 42, an Australian-born electrician, allegedly attempted to research and design a laser warning device and missiles for Islamic State over the internet.

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He did not apply for bail when he appeared before Young Local Court on Tuesday afternoon, and it was formally refused. He will face court in Parramatta on March 8.

AFP Commissioner Andrew Colvin said Mr Zahab was charged with a number of offences, including two "serious" foreign incursion offences which carry a maximum penalty of life imprisonment.

"With these offences, we will allege that he has utilised the internet to perform services for ISIL, activities in the Syria and Iraq conflict, from Australia in the following ways," Mr Colvin said.

"Firstly, by researching and designing a laser warning device to help warn against incoming guided munitions used by coalition forces in Syria and Iraq. And secondly, we will also allege that he has been researching, designing and modelling systems to assist ISIL's efforts to develop their own long-range guided missile capabilities."

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Mr Colvin said the alleged advice given by the "technically-trained" man was "fairly sophisticated and well-planned".

"We will be alleging that the material that he was intending to provide to ISIL, the research he was doing, was credible," he said.

Mr Zahab was charged under section 119.1 of the Commonwealth Criminal Code, which deals with foreign incursions.

Dozens of officers descended on his semi-rural property in Cherry Vale Place early on Tuesday morning and executed search warrants before he was arrested.

The search was part of the long-running Operation Marsburg, an investigation by the AFP's Canberra-based counter terrorism team. It is alleged Mr Zahab acted alone, and no further arrests are expected.

Some officers were seen to use metal detectors to search the ground at his home, while a NSW Police officer from the dog squad stood nearby.

The electrician divided his time between Young and Sydney, where it is understood he had a solar panel installation business in the past. 

One local business owner said Mr Zahab tried to set up a similar business in Young when he first arrived. 

"He said he just moved here because he did alright with the business in Sydney," the business owner said. 

"But one minute you saw him and the next he wasn't doing the installations at all."

Business records show the 42-year-old was the director of company Switch2Green, based in the Sydney suburb of Yagoona, before it was de-registered in 2013. 

Prime Minister Malcolm Turnbull said the arrest of Mr Zahab highlighted a need for Australians to remain vigilant.

"This highlights that terrorism, support for terrorist groups, and Islamist extremism is not limited to our major cities," he told a briefing at Parliament House in Canberra.

"This is yet another example of the excellent work the men and women of the Australian Federal Police and all our security agencies are doing in identifying and disrupting alleged assistance to ISIL."

Justice Minister Michael Keenan said Tuesday's raid, carried out by NSW Police in conjunction with the AFP, came after a year and a half of investigation.

"The arrest today is the result of an 18-month-long operation and it reminds us that whether you are in a capital city planning an attack on home soil or whether you are in a small country town, trying to assist the terrorist state in the Middle East, you will get caught," he said.