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Two men were arrested in Australia on Saturday for allegedly planning an Islamic State-inspired terrorist attack using "edged knives" on a ceremony commemorating Anzac soldiers who have fought and died for their country. Seven search warrants were executed in Melbourne by a joint counter-terrorism team, two months after Prime Minister Tony Abbott warned the threat from home-grown extremists was worsening. "It is alleged both men were undertaking preparations for planning terrorist acts in Melbourne, which included targeting police officers," Victoria state and federal police said in a joint statement. The arrests also come just days after Australia began deploying 330 more troops to Iraq for two years to train local soldiers fighting jihadists including the Islamic State group, joining an aerial and special forces contingent in the region.