Counter-terrorism police are searching a home at Heckenberg in Sydney's south-west.
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The Australian Federal Police said on Monday the NSW Joint Counter Terrorism Team was conducting an "operational activity at the home".
It is part of an ongoing investigation.
"The activity is not related to any threat to the community," the federal police said in a statement.
Australian Federal Police Commissioner Andrew Colvin added, "It relates to terrorism financing."
A number of items have been removed from the property on Tantangara Street, TV footage shows.
A neighbour said a woman lives at the home with her young children and mother, but the woman's husband has apparently not lived at the home for several months, the Nine Network reported.
