Adnan Karabegovic, 23, of Officer, was arrested on September 12 following raids on at least 11 properties in Melbourne’s southeast.
Karabegovic, who appeared clean-shaven and dressed in a suit, was supported in court by his father and wife.
Justice David Beach found the imminent birth of his first child to be an exceptional circumstance which warranted Karabegovic’s release.
“I am satisfied exceptional circumstances exist in this case relating specifically to the position of the applicant’s wife,” he said.
Karabegovic was released on bail with a $500,000 surety.
He was granted bail on the basis that he surrenders his passport and remain at an address at Hallam, except when reporting to police twice a day, meeting with his lawyers, or being with his wife in hospital for the birth.
Karabegovic was ordered not to have any association with the Al-Furqan Islamic Information Centre.
Documents found in his possession were copies of Inspire magazine, an English-language glossy created by al-Qa’ida in the Arabian Peninsula.
Previous issues of the magazine have included instructions on how to make a bomb at home, and a feature on Australia as a target for pyro-terrorism, featuring a picture of the Sydney Opera House with smoke clouds behind it.
Each of the four counts with which Karabegovic has been charged carries a maximum penalty of 15 years’ jail.
In opposing bail, prosecutor Jeremy Rapke QC said in the Melbourne Magistrate’s Court in September that Karabegovic was committed to a course of action that conflicted with the community.
He said Karabegovic had also spoken of going to Bosnia to train.
Karabegovic’s lawyer Rob Stary argued that he needed to be home with his pregnant wife, and said he would live and work with his father if bailed.
In January, Karabegovic hung a banner from an overpass on the Monash Freeway which read “Get your troops out of Muslim lands you dirty convict pigs”, and another which read, “Get your troops out of Muslim lands you filthy kafir”.
Karabegovic will appear before the Melbourne Magistrates Court for a committal hearing on April 8.