Mohammed Noor Masri,26,said he is prepared to face a lengthy jail sentence for his"mistake"but wants his pregnant wife,who is also Australian,and their three young children,brought out of Syria.
The Coalition and Labor are under international pressure on how to handle dozens of similar cases in a way that balances security risks and Australia's international obligations.
The government is yet to confirm whether it would allow Mr Masri to bring his family back to Australia.
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A spokeswoman for Mr Dutton said returning foreign fighters would be dealt with on a case-by-case basis but that the government would be more sympathetic in instances where children were involved.
"The welfare and needs of children would form part of these considerations,"the spokeswoman said,while maintaining that"anyone fighting with or providing support or associating with IS or other terrorist groups has committed a serious crime and will face the consequences should they return to Australia."
Labor is also open to locking up Australian fighters but would not comment on the Masri case.