Prime Minister Tony Abbott released details of video in which one of the two accused MUSLIM terrorists threatened to carry out knife attacks on Australians.

Mohammad Kiad, 25 (right), and his Iraqi born housemate Omar Al-Kutobi, 24 (left)

UK Daily Mail  (h/t Adrian G) Mohammad Kiad, 25, and Omar Al-Kutobi, 24, were arrested in Fairfield, western Sydney, where a police raid allegedly uncovered a machete, a hunting knife, an Islamic State flag and a video featuring both the men, with one recorded making threats of carrying out an attack.

During Question Time in parliament on Thursday, Mr Abbott said he was shown the video during his security briefing with the Australian Federal Police Commissioner and the Director-General of ASIO this morning. “Kneeling before the death cult flag with a knife in his hand and a machete before him one of those arrested said this:

“I swear to almighty Allah, we will carry out the first operation for the soldiers of the caliphate in Australia.” ‘He went on to say: “I swear to almighty Allah, blonde people, there is no room for blame between you and us. We owe you only stabbing the kidneys and striking the necks.”

Both men arrived in Australia from the Middle East as refugees but allegedly became radicalised in recent months.  Mr Al-Kutobi was granted citizenship in 2013 and was studying to be a nurse while Mr Kiad, originally from Kuwait where he immigrated from in 2009, was reported to have been recently fired from his removalist job.

While some neighbours told Fairfax that he was ‘friendly’, ‘open minded about religion’ and ‘never talked about Islam’, others admitted he and Mr Al-Katobi had begun acting differently after the anti-terror raids in western Sydney last September. ‘He began wearing a scarf, just like ISIS and Mohammad, he grew a long beard,’ Neighbour Michael David said of Al-Kutobi.