Australia's terrorist alert level has been raised to high, meaning the risk of an attack is likely. Prime Minister Tony Abbott announced the increased threat level at a news conference in Melbourne this afternoon.
The move takes the level from medium, when an attack "could" happen, but stops short of the highest warning level of extreme, when an attack is "imminent".
It likely to trigger increased security and a bigger police presence at upcoming football finals and other large public events, the ABC reports.
Mr Abbott said the Federal Government has "no specific intelligence" of a plot to mount a terrorist attack, but intelligence shows "there are people with the intent and the capability to mount attacks".
He said security agencies had recommended the increased threat level because of the number of Australians "fighting with and supporting" terrorist groups in the Middle East.
The director-general of the Australian Security Intelligence Organisation (ASIO) said he signed off on the recommendation last night after three to six months of increasing concern.
David Irvine said the threat could manifest itself in "many ways", including in a bombing similar to the one in a Bali nightclub in 2002.