A caravan containing explosives and documents suggesting plans to target the Jewish community has been labelled a terrorist threat by the NSW premier, who said the objects could have led to a "mass casualty event".
A resident found the caravan on the side of Derriwong Road in Dural, north of Sydney, on January 19, NSW Police confirmed.
Powergel explosives were found inside, which police believe may have been taken from a mining site.
READ MORE: Surprise inflation figures boost chance for interest rate cut in February
More than 100 police personnel are working on the investigation.
Speaking at a press conference this evening, Deputy Police Commissioner David Hudson said detectives believed the explosives may have been set for an attack on the Jewish community.
"That caravan contained an amount of explosives and some indication that those explosives might be used in some form of antisemitic attack," Hudson said.
"I can understand the community concern in relation to what the premier has outlined and what is currently evolving.
"However, I can indicate we have no information that there are further explosives in our community in relation to conducting antisemitic attacks anywhere.
"We believe that we have contained appropriately this current threat."
READ MORE: Former top politician seriously hurt in barbecue explosion
Hudson said arrests had been made in relation to the discovery, but maintained police had not informed the public for 10 days as inquiries were ongoing.
Police are looking into the possibility that the caravan was dumped with the intention of being found.
"That's one of the lines of inquiry that we're pursuing, whether it is a strategic matter that they've left those there to be discovered by police or authorities," Hudson said.
"Whether someone was looking for some assistance at court, whether someone was going to disclose the existence of those explosives to us prior to it being recovered."
NSW Police said it had been treating the find as a credible terrorist threat.
Premier Chris Minns called the discovery an act of terrorism.
"It's very important to note that police will make a decision about enacting terrorism powers if they require that … however this is the discovery of a potential mass casualty event, there's only one way of calling it out and that is terrorism.
"There's bad actors in our community, badly motivated, bad ideologies, bad morals, bad ethics, bad people.
"They're intent on doing damage and harm to others in our community, people they've never met before, purely on the basis of their religion.
"It's hateful. It's an ideology that we need to stamp out."
He said that the threat was being taken "incredibly seriously".
READ MORE: Caroline Kennedy warns senators that her cousin RFK Jr is a 'predator'
"Police are very concerned about the rising number of antisemitic attacks in our community escalating to the point where there was a mass casualty event," Minns said.
"Anyone attempting terrorism, violence, or hatred in our community will be met with the full force of the law.
"There are massive amounts of police and government resources being devoted to this investigation, that there will be absolutely no tolerance under any circumstances for these acts of criminal violence in our community."
Executive Council of Australian Jewry co-chief executive Peter Wertheim issued a statement assuring there was no ongoing threat in relation to the discovery.
"We were most concerned to read the reports of this alarming incident," he said in a statement.
"The Executive Council of Australian Jewry has been in contact with the Australian Federal Police this afternoon and we have been assured there is no ongoing threat to the Jewish or wider community.
"We have also been assured that the matter is being thoroughly investigated by the police to get to the bottom of exactly what happened, who was involved and what their motives were.
"It would be inappropriate to comment further until the facts have been confirmed. Given the recent attacks against the Jewish community the sooner that happens, the better."
Hudson also confirmed that there was no ongoing threat to the community.
The discovery comes amid an increase in antisemitic attacks across Sydney in the past few months, including the firebombing attack on a childcare centre in Maroubra on January 21.
Days earlier, the former home of Australian Executive Council of Australian Jewry co-chief executive Alex Ryvchin was also targetted, with two cars set on fire and graffitied in Dover Heights.
The NSW Jewish Board of Deputies said it was extremely concerned at the documents found with the caravan.
"It goes without saying that this is a matter of the gravest possible consequence," the board's President David Ossip said.
"We have been saying for weeks now that the Jewish community is the target of an ongoing campaign of domestic terrorism.
"This is now beyond dispute.
"We are engaging closely with law enforcement and the Government in relation to this matter and the ongoing security of the Jewish community."