Photo of seven-year-old boy holding decapitated head shocks nation

The sickening photo that will shock the world: a seven-year-old boy holding the decapitated head of a soldier. The photo was taken in Syria, but it is frighteningly close to home.

The child is the son of Australian terrorist Khaled Sharrouf, now fighting with ISIS and the image was posted on his Twitter page with the caption "that's my boy."

Tony Abbott says the photo is a warning to the world.

Sharrouf also posted this image of himself with three young boys holding guns.

Security experts are warning that ISIS recruiters target teenagers and children as part of their plan to create and continue a terrorist state.

Disturbing video taken by the online outlet Vice News inside a Syrian town controlled by ISIS shows just how extreme this group is.

At home in Australia, Muslim community leaders have condemned ISIS.

“Muslim leaders are doing their upmost to make sure our young people understand this group is not representative of Islam, they have nothing to do with Islam,” said Sydney Muslim leader Keysar Trad.

In Iraq, US airstrikes continue to have some impact with reports terrorist fighters were forced out of two towns in the country's north.

But thousands of Yazidis are still stranded on Mount Sinjar, facing starvation if they stay or death at the hands of ISIS if they leave.

US and British planes are dropping food and water as the US Secretary of State touched down in Sydney for talks.

Australia is preparing to help too: two Hercules transport aircraft could be deployed within days to deliver more humanitarian supplies. But the Defence Minister, fresh from meetings with his American counterpart, won’t rule out a bigger role for Australian forces.