Leading Australian Daily, The Herald Sun says that Australian Federal Police have arrested two suspected LTTE terrorists in an early morning raid in Melbourne today (Tuesday the 1st of May). One of the developing stories on the newspaper says the two suspects have been arrested in connection with financing the LTTE.

Our correspondent from Australia said that it was the first time that the Australian law enforcement authorities took direct action against the wide spread fund raising activities by the terror outfit on the Australian soil.

Cash for terror: allegation - By: Matthew Schulz and Mark Dunn

Two Melbourne men charged with terror offences used Tsunami donations to fund their activities, police allege. The men have been charged with terror offences after raids across Melbourne eastern suburbs by Federal and State police.

A Mt Waverley man, 32, and a Vermont South man, 36, were both charged on three counts of being members of a terror organisation and providing money to a terror group.

Police will allege the two men are members of the Sri Lankan separatists group Tamil Tigers.

Federal police counter terrorism spokesman Frank Prendergast said they would allege the men were supporting the overseas terror group.

``It will be alleged in court that these men are members of an organisation engaging in terror activities overseas, and they have been providing active, material support to that group,'' Assistant Commission Prendergast said.

He alleged the men had duped Australians who thought they were donating money to Tsunami victims in Sri Lanka.

The joint police counter terrorism team operation raided eight homes and business in the Melbourne east and two properties in Sydney.

The investigation follows Australian Federal Police raids in 2005 in which documents and computers were seized at several Melbourne properties but it is unknown if today's arrests are linked to those earlier warrants.

The Tamil Tiger group operates in Sri Lanka and is seeking a separate state there.