Melbourne Grandmother Granted Bail in Syria Slave Allegation Case

Victoria's most senior magistrate has granted bail for Melbourne grandmother Kawsar Ahmad, who is alleged to have owned a slave under the rule of the Islamic State group (IS) in Syria.

Kawsar Ahmad, 54, was granted bail because prosecutors failed to prove she was an unacceptable risk to the community.

Prosecutors argued against her release, due to concerns she could spread extremist ideology.

Chief magistrate Lisa Hannan said risks could "never entirely be eliminated", but she believed the danger to the community could be managed with stringent bail conditions.

The conditions require Ms Ahmad to regularly report to police, not communicate with people outside Australia, and not conduct religious teachings.

She must also keep a log of visitors to her home. Her brother has provided a $75,000 surety.

The magistrate said she had factored in the safety of the community in her decision, which took close to an hour to read out.

Ms Ahmad is likely to be freed from custody later today.

Family celebrates bail decision

Members of Ms Ahmad's family smiled, hugged and could be heard sighing with relief when the decision was announced.

Ms Ahmad is accused of approving of a slave arrangement, brokered by her husband, which resulted in a Yazidi teenager being kept in their family home.

The woman who was allegedly kept as a slave in Ms Ahmad's family home said she felt "threatened" by her, and claimed she was told her life "would be in hell" if she did not follow Ms Ahmad's religious teachings, the court heard.

Ms Ahmad was one of several women arrested by police when she returned to Australia last month, having spent years in Kurdish-run detention camps.

During the bail application, her barrister Peter Morrissey SC said she now denounced IS and would live a "small and local life" if allowed to live in the community on bail.

She was willing to stay away from local mosques, agree to restrictions on phone usage and adhere to a curfew, he said.

Psychologist says Ahmad had no red flags

A forensic psychologist who assessed Ms Ahmad said she had been radicalised while overseas, but said there were no red flags suggesting she currently held extremist views.

Ms Ahmad told the psychologist that she did not support Islamic State's stance to "kill, kill, kill".

"Now and then it's been the same view. I've never agreed with their beliefs," the court heard she told him.

Police, however, were less convinced that her renunciation of the terrorist group was genuine.

"Police hold serious concerns the accused will endanger the safety and welfare of other persons if released," Australian Federal Police officer Marc Clendenning said.

The magistrate said Ms Ahmad's historic social media posts did not show support for terrorist acts.

"Precise words matter," Magistrate Hannan said.

Earlier this month, Ms Ahmad's daughter Zeinab Ahmad was denied bail by the same magistrate.

She is also facing slavery charges relating to the same teenager.