'What have I done': gun fired in alleged family dispute

Following inquiries, 53-year-old Daniel Murray, was arrested and charged with five offences, including shooting a firearm at a dwelling with disregard for safety.

Murray was denied bail at a brief hearing on Monday morning, during which he appeared from Wollongong police station via video link, handcuffed and wearing a prison green top.

After hearing the result and with his predicament laid bare, Murray uttered to himself "what have I done?"

The court was told the dispute stemmed from Murray's sister and brother-in-law having agreed to allow him use of a shed on their neighbouring property.

"The brother-in-law appears to have reneged on that," Murray's Legal Aid lawyer Anthony Stewart told the court.

"My client has consumed a lot of alcohol and finds himself in this position now."

Murray claims he did not believe the couple were home at the time of the shooting, Mr Stewart told the court.

However, the Bail Court was told an independent witness reported hearing Murray yell "get out here c***" during the shooting.

Acting Judge Kathryn Jurd said the facts presented by police suggested Murray was aware the couple were home at the time.

"There is evidence capable of supporting the assertion that he knew people were home," she said.

"In fact, the argument otherwise doesn't make very much sense."

The judge said the "extraordinary amount of alcohol consumption" leading up to the event went some way to explaining it, but did not detract from the seriousness of the charges.

No injuries were reported during the incident.

Murray is also facing charges of possessing a prohibited firearm, possessing an unregistered firearm, possessing ammunition without a licence, and aggravated break and enter while armed with a dangerous weapon.

If he is found guilty of the offences a prison sentence is highly likely, the court was told.

He is due to return to court for an apprehended violence order hearing on Thursday.