Terror accused 'planned to stab people in kidneys and necks'

THE two men accused of plotting a terrorist attack in Sydney this week had plans to stab people in the kidneys and necks, Prime Minister Tony Abbott has told Federal Parliament.

Police arrested Omar al-Kutobi, 24, and Mohammad Kiad, 25, on Tuesday afternoon charging them with plotting to commit a terrorist attack.

The two will remain in custody for at least a month after their bail appeal was withdrawn.

Police allege they found knives, a homemade Islamic State flag and a video declaration of intent in the men's possession.

Mr Abbott said ASIO and the Federal Police had briefed him on the video.

"Kneeling before the death cult flag with a knife in his hand and a machete before him, one of those arrested said this: 'I swear to almighty Allah we will carry out the first implementation for the soldiers of the caliphate in Australia'," he said.

"He went on to say, 'I swear to almighty Allah, blonde people, there is no room for blame between you and us. We only are you, stabbing the kidneys and striking the necks'.

"I don't think it would be possible to witness uglier fanaticism than this - monstrous extremism than this - and I regret to say it is now present in our country."

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