A report on the threat posed by Australian foreign fighters has cited the Abbott government's "troubled relations" with the Muslim community as undermining efforts at countering violent extremism.
The Lowy Institute report, released on Thursday, says the large number of Australians fighting in Syria and Iraq represents a "serious national security threat" but that the risk of an attack on home soil could be mitigated by the right policy response.
"Returned foreign fighters have been involved in many of the most serious jihadist plots in the West, including in Australia," the report says.
"Returnees from Syria have already engaged in terrorist plots in Europe, and the large number of Australians involved with groups such as IS (Islamic State) and Jabhat al-Nusra raises well-founded fears of an increased threat at home."
While much of the responsibility in dealing with the threat will lie with the police and intelligence services, the report says, it adds that programs aimed at countering violent extremism (CVE) need to be a core element of the response.
The report says "questions remain" as to how any new CVE approach will be implemented by the government, and that "troubled relations with Australia's Muslim communities mean that its efforts to counter violent extremism are not off to the strongest of starts".
A successful CVE approach should draw on the talent that already exists within relevant communities, the report said, but that "community co-operation has been undermined" by a lack of information about changes to the government's approach, including funding of grant schemes.
"Moreover, the poor consultation by the government with the Muslim community on much of Australia's new counter-terrorism legislation as well as the Prime Minister's (Tony Abbott) claim that Muslim leaders are not doing enough to speak out against radical ideas have undermined the prospects for effective co-operation."
The report said the Abbott government's introduction of number of CVE programs, such as $13.4 million Living Safe Together initiative, had been welcomed but that there were also valuable lessons to be learned from European countries, which had more experience in addressing the current foreign fighter threat.
