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ASIO may lift terror alert

Australia's top spy is on the verge of lifting the nation's terror alert level amid growing fears an attack could happen on home soil.

If the alert level is lifted, it will be the first time the warning has changed since the system was introduced by the Howard government after the 9/11 and Bali attacks.

The current terror alert level is medium, meaning a terrorist attack "could" occur.

A change would take the alert level to high, meaning a terrorist attack is "likely".

In his last interview before retiring, ASIO Director-General David Irvine said Australian security officials were becoming increasingly concerned about the number of Australians travelling overseas to fight with radical Islamic groups in Iraq and Syria.

"We are now, I think, having gone through a period where the threat has actually been building here in Australia over the . . . last year or so," Mr Irvine said.

"I have an elevated level of concern."

ASIO estimates as many as 60 Australians might have travelled to the Middle East to fight with hardline organisations such as Islamic State.

Though he declined to give an exact figure, Mr Irvine said "more than 20" Australians had since returned home from fighting with new combat skills such as bombmaking. "You can rest assured that the Australian authorities know what they are looking at and are taking very appropriate steps to monitor the situation," Mr Irvine said.

He said that in recent months ASIO had seen "quite heightened" levels of activity.

The suggestion Australia is at increased risk of a terror attack comes as the Government contemplates taking part in a US-led bombing campaign in Iraq against IS.

US President Barack Obama yesterday spoke to Tony Abbott to thank Australia for its role in the fight against IS.

But Mr Obama stopped short of making a specific request for Australian military assets such as fighter aircraft to take part in any Iraq mission.

Mr Abbott has previously said Australia will consider all requests from the US for any help in a military campaign against IS.

It is understood Australia is most likely to send up to 12 Super Hornet jets, as well as refuelling aircraft, to take part in a limited bombing campaign in northern Iraq.

Speaking on ABC radio, Foreign Minister Julie Bishop confirmed for the first time Australia was considering sending military "advisers and trainers" to Iraq to train Iraqi and Kurdish forces in the use of modern weapon systems.

Mr Obama is to make a major speech today outlining his objectives in a new Iraq mission.