A man arrested in Caringbah this morning is set to face two terror-related charges, police have said.
The 34-year-old was arrested just before 8am, with police carrying out a search warrant in his house.
He is set to face charges relating to membership of a terrorist group, and collecting and making documents likely to facilitate a terrorist attack.
Detective Superintendent Michael Sheehy said the man had been the subject of ongoing counter-terrorism investigations since 2016.
This time last year, he was arrested and charged with using a social media platform to distribute material which may offend, harass or menace.
He spent six months behind bars and was released mid-2021.
Superintendent Sheehy alleged the man had refused to participate in de-radicalisation attempts and that he continued to promote Islamic State material online.
Due to an "escalation" of his activity, Superintendent Sheehy said, it became necessary to arrest him today.
"He was posting significant amounts of material with respect to bombings, beheadings, manufacturing explosives," he said.
"We will suggest he was preparing a terror attack, an act of violence against law enforcement."
Australian Federal Police Assistant Commissioner Scott Lee said the 34-year-old had made threats against law enforcement and the broader community, including members of the Muslim community.
"It goes to show that the actions of this man, and the violent extremist ideology, and the ideology of Islamic State, the hatred and terror that is espoused, is not reflective of the broader Islamic community," Mr Lee said.
Superintendent Sheehy said no explosives had been found on the property, and that the man had "absolutely" been working alone.
Police have said there is no ongoing threat to the community.