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>Two men attempted to smuggle an improvised explosive device (IED) onto an Etihad plane and were hatching a separate plan to build a hydrogen sulphide bomb, police say.

Australian Federal Police Deputy Commissioner Michael Phelan said Khaled Khayat and Mahmoud Khayat, charged last night with terror offences, had been planning "one of the most sophisticated terror plots attempted on Australian soil".

He alleged the IED had been built under instructions from Islamic State (IS) in April, and was to be planted in the luggage of a brother of one of the accused on the Etihad flight out of Sydney on July 15. Police say the brother was not aware of the plan.

Police described the IED as a "high-end military-grade explosive". However, that attempt was aborted.

Four men were arrested as part of terror raids in Sydney on Saturday night. Khaled Khayat and Mahmoud Khayat have both been charged with two terrorism-related offences and were refused bail in Parramatta Local Court today.

Another man was released mid-week, while a fourth man remains in custody.

Deputy Commissioner Phelan said components and chemicals of the "rotten egg gas" bomb were located during searches on properties in Sydney over the last few days but the plot had now been "completely disrupted".

http://www.abc.net.au/news/2017-08-04/sydney-terror-raids-police-say-plane-bomb-plot-disrupted/8773752