Prime Minister Tony Abbott has warned of a serious risk of a terrorist attack in Australia following the country’s largest counter terrorism raid this morning.

Speaking before his departure from Arhem Land, Mr Abbott said high ranking ISIL members were operating in Australia, plotting demonstration killings.

“The exhortations, quite direct exhortations, were coming from an Australian who is apparently quite senior in ISIL to networks of support back in Australia to conduct demonstration killings here in this country,” Mr Abbott said.

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“Obviously the events of this morning were made based on specific intelligence that people weren’t just planning an attack, but had the intention to mount one.”

Mr Abbott’s comments come following allegations of a terrorist plan to abduct a member of the public and behead them on camera.

NSW Premier Mike Baird joined the Prime Minister in condemning the homegrown terrorists, saying they would be “hunted down”.

NSW Police Commissioner Andrew Scipione fronts the media. Photo: Twitter

“We want to say that those who think they’re operating in dark corners, we are shining the light on you,” Mr Baird said.

In a statement, Opposition Leader Bill Shorten said the raids would have been a shock to most Australians.

“It’s a development that reminds us all how close to home the threat of terrorism can be,” Mr Shorten said.

“The reports of what these people were allegedly planning are truly horrifying.”

Liberal Senator Cory Bernardi was quick to renew his campaign for the burqa be banned during the fallout from the raids.

He took to Twitter calling the burqa a “shroud of oppression”.

“Note burqa wearers in some of the houses raided this morning? This shroud of oppression and flag of fundamentalism is not right in Aust,” Mr Bernardi tweeted.

Note burqa wearers in some of the houses raided this morning? This shroud of oppression and flag of fundamentalism is not right in Aust

— Cory Bernardi (@corybernardi) September 17, 2014

Mr Abbott, however, was quick to dismiss his MP’s comments, saying that people’s religion was irrelevant.

“This isn’t about people’s religion, it’s not about what people wear, it’s about potential terrorism attacks here in Australia and that’s what we’ve got to guard against,” he said.

Mr Shorten said Mr Bernardi’s comments were “stupid” and fuelling fear and suspicion.

Immigration Minister Scott Morrison. Photo: AAP

Appearing on Sky News this morning, Immigration Minister Scott Morrison echoed the Prime Minister’s warnings of a terrorist threat.

“Our message hasn’t changed, and that is people should be aware that the threat is there, they should be assured about the response the government is taking,” Mr Morrison said.

Uthman Badar of Islamic political party Hizb ut-Tahrir Australia said the “timely” raids were being used as part of a propaganda campaign by the government.

“As late as last week both the Prime Minister and outgoing ASIO boss David Irvine confirmed that there was no intelligence of any plans to carry out attacks in Australia,” Mr Badar said in a statement.

“A few days later and we wake up to heavy-handed raids and talk of a ‘terrorist network’ planning attacks.”

“The timing of these raids is suspect indeed,” he said.

Mr Abbott praised the efforts of officers following this morning’s raids, saying he was happy police were one step ahead of “those who wish to do us harm”.

“These people, I regret to say, don’t hate us for what we do, they hate us for who we are and how we live,” Mr Abbott said.

“That’s what makes us a target. The fact that we are different from their view of what an ideal society should look like.”