PREMIER Mike Baird said the Islamic State flag could be banned across NSW.

His stance follows footage of one of the flags, which is linked to the barbaric terrorist organisation, being auctioned in front of families and young children in Sydney.

“That is something we will consider and work with community groups about but we can’t have the position where you are seeing any activity that is promoting terrorism, supporting terrorism,” Mr Baird said today.

“There is no way in this state that we are going to support that.

News_Image_File: An IS member flies a similar flag in Raqqa, Syria.

“It is a flag that is used by ISIS, and ultimately that is something we have to respond to and we have to have a zero-tolerance approach,” he said.

The flag, used by the terrorists responsible for thousands of murders across Iraq and Syria, including the execution of two Western journalists, was auctioned at a Liverpool mosque.

Disturbing footage of the sale is being shared among Australian teenagers, some of whom appear to have been radicalised by the extreme violence associated with the outlawed Islamic State, and its black and white flag featuring the Shahada.

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News_Image_File: A still from the teen Muslim boy’s video post of the auction / Picture: Supplied

One 15-year-old Muslim boy who posted footage of the auction to his Instagram account has since posted pictures with the black flag of jihad.

In a chilling reflection of the IS campaign in Syria, another image of himself in a headscarf has a caption directed at Syria’s president: “going to kill Bashar al Assad now”.

News_Image_File: The jihadist flag for sale / Picture: Supplied

While a Muslim community leader claimed the Shahada symbol had largely been hijacked by IS militants, political leaders slammed the flag auction at Liverpool’s Markaz Imam Ahmad mosque and youth centre, led by Sheikh Abu Adnan Mohamad. A painting depicting the flag was also sold.

Mr Baird said earlier: “We expect everyone in NSW to obey the law or face the consequences. All parents and all communities need to protect young people from the insidious and corrosive effects of the radical ideologies that are causing so much suffering around the world.”

News_Image_File: The teen expresses extreme views on Instagram

NSW MLC Fred Nile called the auction “disgraceful” and said the flag used by the Islamic State should be banned in Australia. “They fly the flag as something to be proud of — they should be ashamed of beheading people and selling women into slavery,” he said.

NSW Police investigated and said the auction would only constitute an offence if the proceeds were funnelled to terror groups.

The stated objective of the auction was to raise money for the mosque.

News_Image_File: Attendees at the auction / Picture: SuppliedNews_Image_File: The Islamic Youth Centre in Macquarie St, Liverpool.

Attorney-General George Brandis has signalled the government’s intention to introduce new laws making it illegal to incite and promote terrorism. IS is designated as a terrorist organisation under Commonwealth law.

While repeated attempts to contact the mosque for comment by phone and email went unanswered, Muslim community leader Keysar Trad last night defended the sale, saying the Islamic State had “hijacked” the black and white standard, which bears the Shahada — an ancient Islamic creed that reads: “There is no God except God and Mohammed is the messenger of God.”

CLARIFICATION

An article published on www.dailytelegraph.com.au on September 8, 2014 reported on the auction of a flag which displayed an ancient Islamic symbol by Sheikh Abu Adnan at the mosque Markaz Imam Ahmad in July. The Daily Telegraph did not intend to suggest that Sheikh Abu Adnan and his mosque preached any form of anti-Australian sentiments.

News_Image_File: A member loyal to the Islamic State in Iraq and al-Sham waves a flag in Raqqa, Syria.