"We never associated with him, that guy was brainwashed, I don't know what these kids get into. They don't know how to fight... they should be getting an education and building this country up."
He begins the video by saying "this message I deliver to you the people of America, this message I deliver to you the people of Britain and this message I deliver especially to you the people of Australia".
Titled "Message Of The Mujahid 4", the video which is 1.43 minutes long is full of heavily worded threats and taunts the US-led coalition that recently began air strikes on ISIS targets in Syria and Iraq.
"I say this about your coalition: you threaten us with your countries, bring every nation that you wish to us, bring every nation that you want to come and fight us. Whether it's 50 nations or 50 thousand nations it means nothing to us," Elmir says.
Reading from a script, a black and white scarf wrapped around his head and a huge rifle in his hand, he warns: "Bring your planes bring everything you want to use because it will not harm us because we have Allah which is something you do not have."
"That guy was brainwashed." Abdullah Elmir's family have distanced themselves from him.
A spokesman for Prime Minister Tony Abbott said: "This video again highlights the threat posed by ISIL. As the Prime Minister has said on many occasions, ISIL is a threat that reaches out to Australia and our allies and partners."
Elmir's family told the Sydney Morning Herald in June they were devastated their son had been "brainwashed".
His family's lawyer Zali Burrows told the Australian Associated Press: "The family went to the media today as a plea to the government to bring their boy back. We know they have the intelligence to pinpoint him.
"The concern is that he's being used as a tracking device to gather further intelligence, to see where he's actually going to go."
Ms Burrows questioned how Elmir was not stopped by Federal Police, who were thought to be monitoring him.
On Sunday, Foreign Minister Julie Bishop announced Australia will send its special forces into Iraq to fight against Islamic State.
Elmir's video was published one day after the announcement.
"Is it not apparent to you how are these victories possible?" he asks. "It comes only from Allah and that is why these small numbers of soldiers that we have we take these massive victories.
"And to the leaders to the Obama, to Tony Abbott, I say to you this: these weapons that we have, these soldiers will not stop fighting, we will not put down our weapons until we reach your lands, until we take the head of every tyrant and until the black flag is flying high in every single land."
The jihadist goes on to claim that ISIS are going to put a "black flag on top of Buckingham Palace" and the White House.
"We will keep on fighting and we will fight you and defeat you," he states.
As his hate-filled diatribe finishes he begins chanting in Arabic and the fighters around him join in.
Monash University terror expert Professor Greg Barton said Abu Khaled was an unknown quantity.
"The big thing is this is the third time Australia's been clearly in the frame," Prof Barton said.
A month ago, Islamic State spokesman Abu Mohammad Al-Adnani urged his followers to murder people of a number of nationalities, including Australians.
"Smash his head with a rock, or slaughter him with a knife, or run him over with your car, or throw him down from a high place, or choke him," Al-Adnani said.
Ten days ago, the Islamic State's official magazine, Dabiq, also singled out Australians.
"At this point of the crusade against the Islamic State, it is very important that attacks take place in every country that has entered into the alliance against the Islamic State, especially the US, UK, France, Australia and Germany," it said.
