Andrew Sanders, 25, was charged with one firearms offence and six prohibited weapons charges following a police search of his western Sydney home in the early hours of December 19 last year.
Police allege they uncovered swords, ammunition, literature titled The Terrorist Handbook and a poster carrying the slogan White Pride.
Mt Druitt Local Court was told Sanders, a former security guard and computer hacker, was arrested at a police road block set up at Brighton-le-Sands, in Sydney’s south, following the racial unrest at Cronulla.
Police then carried out a search warrant at the Willmot residence he shared with his mother and girlfriend.
As a result, Sanders was charged with possessing an unlicensed .22 calibre pistol, a canister each of mace and capsicum spray, three smoke grenades and a home-made firearm silencer.
Police have withdrawn an additional charge of possessing a disguise with the intent of using it to commit a criminal offence.
Sanders has pleaded not guilty to the charges.
Police prosecutor Sergeant Ashley Holmes attempted to tender evidence relating to the search of a vehicle at the road block, which allegedly uncovered a drum of petrol, riot helmets and literature relating to a white supremacist website.
However, Magistrate Paul MacMahon dismissed the evidence relating to the car search, saying it did not pertain to the charges before the court.
While not contesting Sanders’ possession of the pistol, defence lawyer Phil Gibson challenged whether it was a prohibited weapon.
He also submitted that the can of mace did not contain enough gas to cause damage.
“That item was not capable of emitting any irritable matter,” Mr Gibson told the court.
He also displayed to the courtroom an unloading device made by Sanders, saying the supposed silencer was actually a part of that device.
An unloading device is used to render misfired guns safe.
Mr MacMahon adjourned the hearing to October 30, when Sanders is expected to give evidence.