3.30pm: A man has been arrested and is about to appear in Young Local Court following a counter terror operation in Young on Tuesday afternoon.
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3pm: Dozens of Australian Federal Police Officers have been searching a property at Cherry Vale Place in Young with metal detectors.
The raid began on Tuesday morning and is ongoing.
Prime Minister Malcolm Turnbull said it will be alleged the man "acted with intent to provide ISIL with the capability" to detect and develop missiles.
"This morning, the Australian Federal Police arrested a 42-year-old man in the New South Wales town of Young in relation to terrorism offences," Mr Turnbull said in a briefing at Parliament House in Canberra.
"This operation does not relate to any planned terrorist attack in Australia.
"Police will allege that the man arrested has sought to advise ISIL on how to develop high-tech weapons capability. This highlights that terrorism, support for terrorist groups, and Islamist extremism is not limited to our major cities."
EARLIER: The Australian Federal Police (AFP) are conducting an investigation in Young today in regards to an ongoing matter.
The operation is taking place at a residence in Cherry Vale Place in Young.
The AFP have confirmed they are conducting operational activity in relation to an ongoing investigation in Young, NSW on Tuesday.
The AFP has said this activity is not related to a current or impending threat to the community.
According to the AFP this activity remains ongoing and it is not appropriate to provide further comment.
Further details will be provided by the AFP at an appropriate time once activity is finalised.