The son of a Syrian-born doctor, who has not been identified as he is an juvenile, was charged with engaging in an act in preparation for, or planning, a terrorist act, ABC News reported.
Police said the alleged attack was to target a location in Australia. The teenager may face a potential sentence of life in prison if convicted.
The teenager was arrested outside his home in the Melbourne suburb of Glenvale, when police carried out controlled detonations to destroy three explosive devises found in the house.
"Victoria Police have been working with the Australian Federal Police and other security agencies dealing with an imminent threat to the community of Victoria," said Robert Hill, Acting Deputy Commissioner.
The boy is believed to have been radicalised quickly, having recently dropped out of school and spent increasing amounts of time in his bedroom on the internet, reports said.
The boy did not enter a plea and did not apply for bail. His next court appearance is May 26.
Last month, five Australian teenagers were arrested on suspicion of plotting an IS group-inspired terrorist attack at a Veterans' Day ceremony.
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