Terror group Isis (Islamic State) has singled out Australia in its latest online magazine, urging followers to conduct lone wolf attacks and to "light the ground beneath them aflame and scorch them with terror".

The 38-page newsletter titled Rumiyah urges attacks on Australians at locations such as Brunswick, Broadmeadows, Bankstown, and Bondi as well as at the MCG, the SCG, the Opera House, and "even in their backyards".

"Stab them, shoot them, poison them, and run them down with your vehicles. Kill them wherever you find them," it says.

Justice Minister Michael Keenan said this was another desperate attempt to attract more supporters, in the face of substantial territory losses and dwindling numbers of foreign fighters.


He said Isis had lost close to half the territory it had held in Iraq and up to 20 per cent of territory in Syria, with recent reports indicating numbers of fighters had fallen to record lows.

"Morale is imploding and their brand is crumbling," he said.

Rumiyah features an article on why it's permissible to shed the blood of almost any non-believer, accompanied by what appears to be a stock image of an English market town flower seller with the caption: "Even the blood of a merry crusader citizen selling flowers to passersby."

The Australian Government says about 65 Australians have died fighting with the group.