Haisem Zahab, 51, was jailed in 2019 by the NSW Supreme Court for supporting a terrorist organisation after researching and developing a laser warning receiver, rockets and rocket guidance methods for IS.
He was released in March and moved to live with his family in the regional NSW town of Young, where he has been keenly watched by federal police.
On Thursday, his lawyers argued that all supervision conditions under the court-imposed control order should be removed.
The electrician has repeatedly denounced the Islamic State and received psychological help for his diagnosed autism disorder, his barrister Riyad El-Choufani told the Federal Court.
"(These things) are the culmination of a seven-year journey towards this man's redemption," he argued.
The control orders require Zahab to get permission from federal police to leave his home for more than 24 hours and mandate that he wear an ankle bracelet for electronic monitoring.
Mr El-Choufani contended these conditions exacerbated his client's anxiety, prevented him from finding work and did not aid in his rehabilitation into the community.
Zahab was not present in the Sydney court on Thursday, instead observing the proceedings via audio-visual link.
The former sparky had sought to avoid contact with convicted terrorists while in custody, the barrister said.
"I'm sorry for my crimes, I'm remorseful, I'm embarrassed , I'm ashamed," he told prison officers.
As a result, he was subject to insults, threats and accusations by certain inmates that he had betrayed his religion, Mr El-Choufani told the court.
Zahab had also participated in psychological counselling and counter-extremism programs in custody, the barrister submitted.
The 51-year-old had continued to re-integrate into society after release through further counselling, applying for his electrical licence and taking a solar batteries course, the court was told.
His family have also completed a course in radicalisation to allow them to spot the warning signs.
But AFP barrister Trent Glover SC argued that a full suite of control orders was necessary.
He said Zahab's recently diagnosed autism made him vulnerable to re-radicalisation by extremist propaganda if left unsupervised.
"While awareness of the diagnosis is undoubtedly positive, he is yet to be tested in the community," he told the court.
"Given his vulnerabilities, it's unknown how he would respond."
Zahab was both geographically and socially isolated and was still unemployed, Justice Robert Bromwich heard.
The same risks in place in 2014 before Zahab's rapid radicalisation existed now, Mr Glover said.
At the time, the Arab Spring had erupted and the electrician came to see IS as a bulwark against the oppressive regime of then-Syrian president Bashar al-Assad.
Mr Glover said on Thursday the AFP wanted the control order extended to March 2027, the maximum allowable under Australian law.
Justice Bromwich reserved his decision on whether the orders will continue, be varied further, or entirely scrapped.
But he varied some of the control orders, removing the requirement for Zahab to wear an ankle bracelet and permitting him to have a knife for farming or fishing.
Zahab was jailed after he researched and used 3D technology to develop the mechanical design and fabrication of a laser warning receiver to provide advanced notice of incoming laser-guided weapons.
He created a 288-page report on the receiver and sent it via secure software to a UK national who later admitted IS membership.
Lifeline 13 11 14
beyondblue 1300 22 4636
8°C