A teenager with alleged extreme right-wing views is facing terrorism-related charges in Australia.

The police said he supported and wanted to be involved in "a mass casualty event,'' ABC News Australia reports.

Tyler Jakovac, 18, was arrested by the NSW Joint Counter Terrorism Team, comprising of the Australian Federal Police and NSW Police Force.

"The male we've arrested has an extreme right-wing ideology and is focused on neo-Nazi, white supremacist and anti-Semitic material," AFP Assistant Commissioner Counter Terrorism Scott Lee said.

The teenager allegedly used social media and apps to express support for extremist ideology.

Assistant Commissioner Lee said bomb-making instructions were shared online "which he has sought to provide to others as part of his activities to urge others to commit terrorist acts and violence against community members".

The decision to arrest the teen at his Albury home came after an "escalation of this male's behaviour which continued right up to this morning", Assistant Commissioner Lee said.

"A couple of days ago what we observed was an escalation in the tone which went to a support of a mass casualty event, and potentially his involvement in that event," he said.

"There was a post in the very early hours of this morning which actually expressed support for a previous mass casualty shooting that had occurred internationally."

In a statement, NSW Police said the teen is expected to be charged with two offences: urging violence against members or groups and advocating terrorism.

The offenses hold a maximum combined term of 12 years' imprisonment.

The teenager Tyler Jakovac, 18, allegedly used social media and apps to express support for extremist ideology.

Australia arrests teen linked to extreme right-wing ideology