Southeast Asia a likely target for IS terror attacks: Aussie PM

Southeast Asia is the likely location for the next mass-casualty terrorist attack on Australian citizens, the nation's Prime Minister Malcolm Turnbull said on Thursday.

Turnbull told Parliament that Australia must recognize the danger that Islamic State (IS) poses in Southeast Asia, as the established network of Islamic extremists could be "galvanized" by IS and also joined by potential new recruits.

"It is quite possible that the next mass casualty attack on Australian victims will be somewhere in Southeast Asia, where IS propaganda has galvanized existing networks of extremists and attracted new recruits," Turnbull said on Thursday.

"Indonesia, Malaysia, the Philippines and Bangladesh have suffered terrorist attacks over the past year. Many are expecting further attacks."

Turnbull said it was important for Australia to collaborate with anti-terror bodies from Southeast Asian nations in order to protect the safety and security of locals and tourists alike.

"And I know many of these governments are concerned about the implications of returning terrorist fighters, just as we are alert to the risks posed by returning fighters in Australia," Turnbull said.

Meanwhile, the prime minister also announced that the government had reviewed its policy on targeting IS forces in Iraq and Syria, with a bill introduced into Parliament on Thursday which would allow Australian Defence Force (ADF) to "target and kill a broader range of (IS) combatants."

He said the proposed law changes would allow the ADF to engage militants to "the maximum extent allowed by international law" while soldiers would also be backed by "domestic laws" which would be brought into line in order to avoid confusion.

"This means that ADF personnel will be able to target IS at its core -- joining with our coalition partners to target and kill a broader range of IS combatants -- which is consistent with international law," Turnbull told Parliament.

"To defeat them, so must we adapt. We cannot take winning the peace and stability for granted."

Opposition Leader Bill Shorten indicated his party would support the proposed changes in the Parliament. He said IS has the "ability to evolve" and Australian must stay ahead of the curve to counter terrorist activity. Endit