Australia has committed a small team of soldiers and two spy planes to the Philippines, and will try to flex some financial muscle over militants causing havoc in the country's south.
Justice Minister Michael Keenan has pledged $4.6 million for Australian intelligence agents to work alongside neighbouring countries to stop terrorism dollars from pulsing through Southeast Asia.
"We know that very small amounts of money can do an enormous amount of damage when it comes to terrorism," he told Sky News on Thursday.
The money will be used to detect and disrupt funding to Islamic State-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.
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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.
The Philippines has for months fought to take back the city in a conflict that has displaced an estimated 400,000 people.
About 800 people have been killed, including about 200 militants.
Prime Minister Malcolm Turnbull has repeatedly warned Marawi must not be allowed to become the "Raqqa of Southeast Asia".
