Australian police have arrested 17 people on charges of planning a terrorist attack and committing to "violent jihad in Australia".
One of the arrested men was in critical condition in hospital after being shot during early morning raids in Sydney and Melbourne, in which police seized chemicals, firearms, computers, backpacks and travel documents.
Another of those arrested included an outspoken Muslim cleric who supports Osama bin Laden.
Police said the loose-knit group did not have a target but that it was trying to buy chemicals similar to those used in the London bombings in July.
"Intelligence was received that a group was making arrangements to stockpile chemicals and other materials capable of making explosives," New South Wales state Premier Morris Iemma said.
"Police believe that the group was planning a terrorist attack in Australia," Mr Iemma said.
During a court appearance, police said Muslim cleric Abu Bakr, who called bin Laden a "great man" and defends Muslims fighting US forces in Iraq and Afghanistan, was the spiritual leader of the group.
He was remanded in custody until January 31st. The Melbourne court was told the men had engaged in military-like training in rural Australia.
Prime Minister John Howard last week said Australia received intelligence about a "terrorist threat" and amended anti-terror laws making it easier for police to arrest suspects.
Australia, a staunch US ally with troops in Iraq and Afghanistan, has never suffered a major peacetime attack on home soil. The country has been on medium security alert since shortly after the September 11th, 2001, attacks on the United States.