A NSW electrician has been charged after he allegedly advised Islamic State overseas on how to develop "high-tech weapons capability".
Haisem Zahab, 42, appeared in Young Local Court on Tuesday charged with two foreign incursion offences which carry a maximum penalty of life imprisonment.
He's also charged with failing to comply with an order to assist in the access of data.
Zahab, an Australian-born citizen, did not apply for bail and it was formally refused. He's next due to appear in Parramatta Local Court on March 8.
Prime Minister Malcolm Turnbull on Tuesday said the 42-year-old man was arrested in Young on terrorism offences which didn't relate to any planned domestic attack.
"Police will allege that this individual, in a regional centre, acted with intent to provide ISIL (Islamic State) with ... the technical capability, and high-tech capability, to detect and develop missiles," Mr Turnbull told reporters in Canberra.
"This highlights that terrorism, support for terrorist groups, and Islamist extremism is not limited to our major cities."
Justice Minister Michael Keenan said the arrest was the result of an 18-month investigation.
The property in question in Young, NSW. Source: Australian Federal Police
Federal Police Commissioner Andrew Colvin said Zahab allegedly researched and designed a laser warning device to help warn against incoming guided munitions used by coalition forces in Syria and Iraq.
"Secondly, we will also allege that he has been researching, designing and modelling systems to assist ISIL's efforts to develop their own long-range guided missile capabilities," Mr Colvin told reporters in Canberra.
