Electrician Haisem Zahab, 42, was allegedly accessing substantial amounts of information on line about what materials he could buy to build the missile and a laser warning device as well as instructions on how to construct it.

“The material included details on the electronics and circuitry required to build a missile,’’ a senior police source claimed.

“He was nowhere near building a missile but he had obtained materials to start doing so and he was researching and designing the weapon.’’

Police will allege he was relaying the information to Islamic State directly and through extensive family connections he has in both Syria and Iraq who are well known to Australian authorities as financiers of terrorists organisations.

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Some of his relatives had been identified more than 18 months ago during Operation Markesberg which was ongoing and led to yesterday’s arrests.

Those relatives include Hicham Zahab, who was arrested and charged with being a key player in a major arms smuggling syndicate, supplying surface to air missiles to the Islamic State.

The Australian Federal Police seized more than $500,000 from the accounts of Hicham Zahab, his wife Aminah, son Muhammad and daughter-in-law Mariam Raad in 2015, after the family fled Australia.

At least one family member is suspected to be in Syria.

Haisam Zahab, the alleged brains behind the latest ISIS missile deployment plan, lived with his young family in an ordinary four bedroom home in Young two hours drive from Canberra. Federal Police described him as a “very technically minded person.’’

Mr Zahab was the registered owner of a business called ‘Oz Survival Gear’ registered to the Cherry Vale address raided by police with the business name owned by ‘Haisam Zahab’.

Company records show the business operates out of the Young home.

Through eBay and an online shop it sells a range of Swiss Army knives, flashlights and Bear Grylls paraphernalia with the website boasting the quote “a knifeless man is a lifeless man”.

Business records also show Zahab was formerly a director of Switch2Green, a solar panel company in Yagoona in western Sydney.

A YouTube account in his name has liked videos of gas tests, machinery and engine modelling as well as a video titled ‘9/11 exposed — what really happened on 9/11 — no planes’.

James Minehan said he often saw Mr Zahab when he visited his grifriend’s parents who lived next door to him.

“They have lived next door to them for about six years but they keep to themselves a lot, they were very private people.

“They have kids, about two or three, probably in their early teens or younger.

“You would say he was an electrician but he wasn’t one to go out daily doing that type of thing, they only had one vehicle and you never saw it leave the house at all.

“We would be able to hear them talking, but it was not like they ever spoke aggressively or loud.

“You would see him (Zahab) sitting outside while his kids were playing.

“It’s an open area, so they have got a bit of land, but if you stand on my girlfriend’s porch you can see them sitting out the back.”

Mr Minehan said he had thought it was unusual that they would always lock their front gate, something no one really bothered to do in the small town.

“It was a bit weird, we’d be outside near the fence but you’d never see them come out and interact like normal country neighbours,” he said.

“It’s really scary to think that someone is next to you, you think you’re in a nice quiet town.”

Federal police swooped on the home yesterday and arrested the father of three who was refused bail after briefly appearing in Young courthouse.

With a young female supporter Mr Zahab was charged with two counts of preparations for incursions into foreign countries for purpose of engaging in hostile activities and also of giving or receiving goods and services to promote the commission of an offence.

Also one offence contrary to section 3LA (5) of the Crimes Act 1914 (Cth) where a person with knowledge of a computer or a computer system failing to comply with an order/

The Prime Minister Malcolm Turnbull took the extraordinary step of holding a press conference with Federal Police Commissioner Andrew Colvin to announce the arrest.

“Police will allege that the man arrested has sought to advise ISIL on how to develop hi-tech weapons capability this highlights that terrorism, support for terrorists groups and Islamism extremism is not limited to our major cities,” Mr Turnbull said.

It included researching and designing a laser warning device to help warn against incoming munitions used by coalition forces in Syria and Iraq and researching, designing and modelling systems to aid ISIL’s efforts to develop their own long-range guided missile capabilities.

“The evidence uncovered to date does not involved immediate domestic attack planning but it is yet another reminder of the enduring threat we face from Islamist terrorism,’’ Mr Turnbull said.

AFP Commissioner Andrew Colvin said Mr Zahab had been living in the small town of Young for quite a while and was known as a family man and Australian born.

Mr Zahab is being represented by high profile criminal lawyer Adam Houda who is yet to speak to his clients about the charges.

It is understood Mr Zahab is being held at Junee Jail until his next court appearance next week.