Julie Bishop says Australia preparing for Isis to declare 'caliphate' in southern Philippines

Foreign affairs minister says threat is on Australia's doorstep as Islamic State is forced out of the Middle East

Australia is readying itself for the possibility of Islamic State declaring a "caliphate" in the southern Philippines as the extremist group is forced out of the Middle East.

The foreign affairs minister, Julie Bishop, who has just returned from talks in the US with countries involved in the fight against Isis, says authorities are concerned about an estimated 600 foreign fighters from south-east Asia surviving the campaign in Iraq and Syria and returning home.