Via Herald Sun:

A teen terror suspect under investigation for making threats against Prime Minister Tony Abbott was shot dead by police last night after stabbing a Victorian police officer and a federal police agent.

The injured officers, both from the Joint Counter Terrorism Team, are in hospital in a stable condition.

Senior intelligence sources confirmed that the terrorism suspect had been among a number of people whose passports were recently cancelled.

It is believed that the man was well known to police, and had displayed Islamic State flags in the local Dandenong shopping centre.