Islamic State

The Australian Government initially listed the group now known as Islamic State in 2005 under its Arabic name, Tanzim Qa’idat al-Jihad fi Bilad al-Rafidayn and re-listed it in 2007. It was subsequently listed as al-Qa'ida in Iraq in 2008, with further re-listings in 2010 and 2013. In December 2013, the listing was updated to reflect the group’s new name, Islamic State of Iraq and the Levant (ISIL). Following the group's declaration of a caliphate and territorial expansion on 29 June 2014, it was listed as Islamic State in July 2014. The group was re-listed under this name in 2017, 2020, and again in 2023. The Islamic State (IS) is a Sunni Islamic extremist organization and self-declared caliphate, originally based in Iraq and Syria. It rose to prominence in 2014 when it seized major territory, implementing brutal governance based on an extreme Salafi interpretation of Islam. IS rejects national borders, elected governments, and non-Salafi Muslims, aiming to restore a pan-Islamic theocracy modelled on early Islamic empires. Following its territorial defeat in March 2019, IS reverted to insurgent tactics and global terrorist operations. IS is responsible for mass atrocities, including genocide, ethnic cleansing, sexual slavery, and terrorist attacks. Its global ideology continues to inspire attacks even without territorial control.

Syrian Civil War and Rise of ISIS

Instability following the Arab Spring allowed the Islamic State of Iraq to expand into Syria in 2013. Exploiting the power vacuum, the group gained ground in Aleppo, Idlib, and Raqqa, bolstered by foreign fighters from the Middle East, Chechnya, and Europe. In April 2014, the group formally broke from al-Qaeda and renamed itself the Islamic State of Iraq and Syria (ISIS).

The Islamic State (IS), originally founded as Jama’at al-Tawhid wa’al-Jihad (JTJ) in 1999 by Abu Musab al-Zarqawi, has evolved through multiple phases, becoming a major global jihadist organization. In 2004, it transformed into al-Qaeda in Iraq (AQI), aligning with al-Qaeda before rebranding as the Islamic State of Iraq and the Levant (ISIL) in 2013. That same year, IS formally split from al-Qaeda and, in June 2014, under the leadership of Abu Bakr al-Baghdadi, declared the establishment of a caliphate, asserting itself as the Islamic State.

Leadership Evolution and Organizational Structure

The leadership of IS has seen several key figures shaping its trajectory. Abu Bakr al-Baghdadi served as the first caliph from 2010 until his death in 2019, after which Abu Ibrahim al-Hashimi al-Qurashi took over until 2022. Short- lived successors like Abu al- Hassan al-Hashimi al-Qurashi and Abu al-Hussein al-Husseini al-Qurashi led briefly until their respective deaths or alleged killings. The current spokesman is Abu Omar al-Muhajjir. Since 2019, the IS leadership has decentralized, enabling its global affiliates to operate semi-autonomously while maintaining ideological allegiance to the core. This structural shift has made IS a more diffuse and resilient network.

Global Operations and Affiliates

IS extends its influence worldwide through its network of “provinces” known as Wilayat. These affiliates include IS- West Africa, IS- Libya, and IS- Somalia in Africa; IS- Sinai and IS- Khorasan (covering Afghanistan and Pakistan) in the Middle East; as well as IS- East Asia and the Abu Sayyaf Group in the Philippines. The group’s affiliates conduct localized insurgencies and terrorist attacks while remaining ideologically aligned with IS’s central leadership. IS has demonstrated the capacity to orchestrate high-casualty attacks far beyond the Middle East, with incidents reported in Europe, Iran, Israel, and Türkiye. Some significant recent attacks include the March 2023 killing of 26 civilians near Hama, Syria; the October 2022 attack on a shrine in Iran killing 15; a prison assault in Syria in January 2022 causing 159 casualties; and the Vienna shooting in November 2020 that claimed four lives.

Recruitment, Membership, and Financing

At IS’s peak, it commanded over 65,000 fighters, including approximately 40,000 foreign fighters from more than 120 countries. Since territorial losses and military defeats in Iraq and Syria, the active core has diminished to an estimated 14,000-18,000 militants, with around 30,000 others imprisoned. IS employs sophisticated recruitment methods, leveraging propaganda and social media to target Sunni Muslims globally. Indoctrination extends to children educated within IS-controlled territories. The group exploits prison breaks and displacement camps to bolster its ranks and promotes lone-wolf or localized homegrown attacks inspired by its ideology.

Financially, IS once relied heavily on oil revenues, which have since sharply declined post-2019. It still funds its operations through looting, taxation and extortion within controlled areas, criminal activities such as kidnapping and ransom, theft, and illicit trade. Investments in legitimate businesses also contribute to sustaining the group’s finances. Despite losses, IS retains substantial financial reserves to support ongoing insurgency and terrorist activities.

Threats to Australia and International Response

IS explicitly calls for attacks against Australia and other Western nations, motivated partly by these countries’ military involvement against IS in Iraq and Syria. The 2014 Lindt Café siege in Sydney was directly inspired by IS ideology. Over 200 Australians have joined IS overseas, with some appearing in propaganda materials. The group’s online presence continues to influence and radicalize individuals within Australia. In response, Australia, alongside allied nations such as the United States, United Kingdom, Canada, New Zealand, and the United Nations, has designated IS as a terrorist organization. While IS suffered territorial defeats, it remains committed to planning and inciting terrorism globally, targeting civilians and security forces alike. Australia’s counter- terrorism strategy involves disrupting terrorist activities domestically, preventing foreign fighter travel, enhancing intelligence operations, legislative reforms, and international cooperation for justice and security. The government has actively canceled passports and monitors the return of foreign fighters to mitigate risks posed by battle- hardened individuals who may instigate violence. Australia continues to strengthen partnerships in the Indo- Pacific and globally to counter the persistent threat posed by IS and its affiliates.

The brutality of ISIS and its threat to minorities led to the formation of a U.S.- led Global Coalition in 2014. Airstrikes and ground campaigns followed, with the Battle of Mosul in 2016–2017 marking a major defeat. Although ISIS lost most of its territory, its ideology continues to inspire terrorism worldwide, from large- scale attacks in Europe to lone- wolf incidents and has fuelled global security and refugee crises.

Action against ISIS

ISIS’s 2014 declaration of a caliphate highlighted major weaknesses in Iraq and Syria’s governments and security forces. In Syria, Assad’s heavy-handed rule and lack of control outside major cities allowed ISIS and other extremist groups to gain ground. In Iraq, the weak post-US withdrawal military failed to prevent ISIS from capturing Mosul and expanding rapidly. ISIS’s brutal tactics, including the execution of Western hostages, spurred international military action. The US began airstrikes in Iraq (August 2014) and Syria (September 2014), supported local forces, and eliminated key ISIS leaders. By 2016, Iraqi and allied forces reclaimed key cities like Tikrit, Ramadi, and Mosul by 2017. Syrian and coalition forces pushed ISIS out of border areas, Palmyra, Tabqa Dam, and finally Raqqa by late 2017. Though ISIS lost most territory by 2018, it shifted to terrorism, with attacks and suicide bombings. The Syrian government and US declared ISIS defeated by the end of 2018, but small ISIS pockets remained, and threats continued. By 2019, ISIS had lost nearly all territory, but experts warned of premature victory claims and risks of resurgence if foreign forces withdrew too quickly. ISIS- K remained active in Central Asia but failed to gain territory due to Taliban opposition.

The trajectory of the Islamic State (IS) - from its origins as a local insurgent group in Iraq to a transnational terrorist network with global affiliates - underscores its adaptability, resilience, and enduring threat to international security. While the group’s territorial “caliphate” was dismantled by 2019 through coordinated military campaigns by local and international forces, IS has successfully transitioned back to insurgent and terrorist tactics, leveraging its decentralized structure to inspire and direct attacks worldwide. Its ideology, rooted in a violent, ultra- Salafi interpretation of Islam, continues to resonate with a small but dangerous segment of global jihadist sympathizers, sustaining recruitment, propaganda, and radicalization efforts through both physical networks and online platforms.

For countries like Australia, IS remains a pressing national security concern - not only because of its explicit calls for attacks and past influence on domestic terrorism (such as the Sydney Lindt Café siege) - but also due to the risk posed by returning foreign fighters, self-radicalized individuals, and the group’s persistent online presence. The Australian government’s continued proscription of IS, alongside robust counter-terrorism legislation, intelligence sharing, foreign fighter travel restrictions, and partnerships within the U.S.- led Global Coalition, reflects the necessity of a sustained, multi- layered response.

Ultimately, the fight against IS is as much ideological as it is military. Its territorial defeat has not equated to the eradication of its influence; instead, IS has shifted into a phase where it thrives on instability, conflict zones, and ungoverned spaces while maintaining the capacity to orchestrate or inspire attacks far beyond the Middle East. Meaningful long- term security will depend on maintaining global counter-terrorism cooperation, addressing root causes of extremism, stabilizing fragile states, and countering IS propaganda. Failure to do so risks allowing the group- or its ideological heirs-to re-emerge as a potent force capable of reigniting large- scale violence and undermining regional and international stability.

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Islamic State