Residents of regional NSW should be alert to any potential terror threats but the chance of an attack is low, Parkes MP Mark Coulton says.
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In the wake of a counter-terrorism operation late last week that led to charges against two men Mr Coulton said Australia was well-protected by its agencies.
He urged people to be alert but said "we don't need to be over-reacting".
"I think the chance (of a terror attack) is very low in Australia, and particularly low out in the bush," he said.
"One of the reasons we've never had a major terror attack is we have excellent security agencies.
"People can take comfort from that fact."
Parliament is set to debate moves to expand the Australian spy agency's powers from today and Attorney-General George Brandis will introduce a foreign fighters bill to the Senate on Wednesday which includes measures to criminalise terrorism advocacy.
People who intentionally counsel, promote, encourage or commission terrorism acts could face up to five years in jail.
Mr Coulton said he understood there had been communication between Mr Brandis had members of the opposition.
"It's my hope it will be done in a bipartisan way," he said.
The Parkes MP said there was a large Muslim population in Australia and the "overwhelming majority embraced Australia as their new country".
Mr Coulton said that while in some cases there were people preaching incitement to violence, the response must not be an attack on Muslims in Australia.
"Frankly that's what the terrorists want to happen . . . for a divide to develop and make it easier to recruit," he said.
"We have to understand there are Muslims in this country who have family members being persecuted and murdered in other parts of the world.
"They need our support rather than our suspicion."
After Thursday's raids NSW Police Commissioner Andrew Scipione announced Operation Hammerhead, an ongoing statewide operation focussing on high-visibility policing, increased presence in public places and public transport hubs.
"Our police will continue to work tirelessly to prevent any such attacks but I stress this is a time for calm," he said.
n Coulton's Catch-Up page 8