Peter Dutton, Australia's home affairs minister, has since confirmed Israel's role in preventing the attack.
According to an army announcement on Wednesday, the IDF's famed 8200 cyber unit uncovered the plot and then relayed the information to Israel's intelligence community, which shared it with local Australian enforcement agencies.
"The foiling of the attack led to saving dozens of innocent lives and demonstrates that Unit 8200 is a player in the intelligence battle against Islamic State", the IDF said.
Concrete information provided by the IDF's premier Intelligence unit thwarted a plot to blow up an Etihad Airways plane traveling from Sydney to Abu Dhabi last July, preventing a potentially catastrophic event.
"The Israeli intelligence services thwarted the downing of an Australian plane, an unimaginable slaughter", the Israeli leader told an American Jewish conference in Jerusalem on Wednesday. This was just one of the many terror attacks that were prevented around the world by our intelligence divisions.
"The Etihad flight was nearly blown out of the sky and would have resulted in hundreds of people losing their lives so we are very grateful for the assistance Israel provided in that matter", Dutton told a local radio station.
The time and route of the flight were not revealed.
Following the arrests, AFP deputy commissioner Michael Phelan said tests of the airport security systems using a mock IED returned a 100 per cent success rate.
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Speaking at the Chatham House think tank in London, he continued: "If we lose the JCPOA, we will face another nuclear crisis ". Iran remains in compliance with the 2015 nuclear accord signed with six world powers, the United Nations atomic watchdog says.
"We are very grateful for the assistance that Israel provided in that matter and we still have a very close relationship with them and many other partners".
Professor Barton said the 8200 military intelligence unit is an extremely sophisticated agency which intercepts so-called signals intelligence, such as telephone and internet communications.
Dutton said 14 imminent terror attacks had been stopped in Australia in recent years with 85 people charged with terror-related offences.
Lebanon says a fourth brother, Tareq Khayat, moved to the Islamic State stronghold of Raqqa in Syria and become a commander in the jihadist group well before the planned Etihad bombing.
"In the days between getting the intelligence data and making the arrests, they [Australian authorities] had to identify the targets. they had to put them under surveillance and then move as quickly as they could", Professor Barton said.
One of the four men arrested was released without charge.
Lebanese-Australian brothers Khaled Khayat, 49, and Mahmoud Khayat, 32, were later arrested in Sydney and charged with "preparing for, or planning, a terrorist attack".