Australia has imposed financial sanctions on a 23-year-old Australian man accused of becoming a high-profile recruiter for the Islamic State movement in Syria, who invites women to join him and urges young jihadis online to strike at home.

Neil Prakash, a former Buddhist from Melbourne city who is also known by the jihadi name Abu Khaled al-Cambodi, appeared in an Islamic State recruitment video in April days after police arrested five Melbourne teenagers and charged two of them over an alleged plot to attack police.

Foreign Minister Julie Bishop said Thursday that Prakash was listed for targeted financial sanctions, which make it a crime to deal with Prakash's assets or to provide him with material support. The offense carries a potential sentence of 10 years in prison.