The perpetrator may face a life term in prison.

Officials said that he had initially planned to shoot at random strangers using an automatic gun at Federation Square, Melbourne.

Victoria Police deputy commissioner Shane Patton was quoted in the media as saying, "What we will be alleging is that he was intending to use a firearm to shoot and kill as many people as he could."

"This is a person who would become particularly energised, for a lack of a better word, when overseas events occurred and would express a great deal of interest in committing an attack himself," Patton added.

Divulging details about the perpetrator, Patton said that he was in Police's radar as a man of interest ever since January this year.

Though he has not been identified by name, the man in question was born in Australia to Somali parents.

He also had links with other extremists but was a lone wolf.

Around 500,000 people celebrate New Year's Eve in Federation Square last year.
 

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