Cyber-terrorism has evolved as a new form of terrorism since the development of new information and communication technologies (ICTs) such as the Internet. It has become an issue of concern to the Australian government as well as a global issue since the impact of the September 11, 2001, tragedies, the Bali bombings in 2002, and the London bombings of 2005. Australia, together with other leading nations such as the U.S., currently faces the threat of conventional terrorism; however, we also now face the possibility of a new digital form of terrorism: cyber-terrorism. This article explores this new form of terrorism and provides examples of possible cyber-terrorism and closely related cases. It also highlights vulnerabilities within Australian computer systems and provides an overview of the future trends of this new emerging threat within the Australian context.