An Australian teenager is facing terror charges over stuffing a kangaroo with explosives, painting it with the so-called ’Islamic State of Iraq and the Levant’ (ISIL) takfiri group symbol and setting it loose on police.

An Australian teenager is facing terror charges over stuffing a kangaroo with explosives, painting it with the so-called 'Islamic State of Iraq and the Levant' (ISIL) takfiri group symbol and setting it loose on police, media reported Thursday citing court documents.

Sevdet Besim, 19, who was arrested in counter-terrorism raids in Melbourne in April - pleaded not guilty to four charges related to planning an attack during Anzac Day commemorations for Australian and New Zealand Army Corps troops who died in combat.

A fifth charge of conspiring to commit a terrorist act was dropped.

Prosecutors alleged that Besim had online conversations with another teenager based overseas, which involved using the marsupial during an attack.

Besim's court appearance came two days after authorities charged an 18-year-old Sydney teen with collecting documents on ways to stage terrorist acts.

Authorities have conducted a series of counter-terrorism raids in various cities, while the government has passed new national security laws.

Besim was remanded in custody and will appear in the Victorian Supreme Court on February 3.