Australians travelling to the Phillipines have been warned it's probable they could be harmed by Islamic State's East Asian arm.
The Turnbull government is in the process of outlawing Islamic State East Asia, which domestic intelligence agency ASIO says has about 300 members and is being funded by IS.
The organisation, led by Isnilon Hapilon, is believed responsible for a large-scale attack on Marawi City in May as well as at least six other incidents since April 2016, including hostage beheadings in Lanao and a market bombing in Davao City killing 15 and injuring 69.
Isnilon made a public statement in June stating his group had established a separate Islamic state and encouraged people to take part in the armed conflict against the Philippines government.
ASIO, in a report provided to the parliament's intelligence committee to back up the Australian ban, said there were no direct links between ISEA and Australia but previously links existed between Australians and terrorist groups in the Philippines.
"Islamic State East Asia has not made statements specifically threatening Australians or Australian interests - however, the group has issued statements threatening westerners and western interests in general," the report said.
"It is probable Australians could be harmed in the group's future attacks, due to the considerable Australian business interests and the number of Australian travellers in the Philippines."
Last week Justice Minister Michael Keenan pledged $4.6 million for Australian intelligence agents to work alongside neighbouring countries to detect and disrupt funding to IS-aligned terrorist groups.
The Australian Federal Police is also increasing its footprint in the Philippines, with four officers based in the country focused on countering the threat of Islamic State, and another two due by the end of October.
Australia is sending a small team of troops to the Philippines to help train local forces.
The soldiers will be confined to Philippines military bases and will not fight alongside local forces.
Australia has sent two Orion spy planes to the southern city of Marawi to help provide surveillance support to soldiers on the ground.
Philippines officials estimate since the May attack and seizure of parts of Marawi City, 673 rebels, 149 soldiers and police and 47 civilians have been killed in the conflict, and another 600,000 people have been displaced.
Prime Minister Malcolm Turnbull has repeatedly warned Marawi must not be allowed to become the "Raqqa of Southeast Asia".
Philippines forces recaptured three key positions in Marawi over the weekend.
Philippines armed forces chief General Eduardo Ano told reporters in Manila on Monday: "We don't want Isnilon to leave Marawi alive."
