The brother of Australian cricketer Usman Khawaja has been freed on bail amid accusations he framed a colleague with a fake terror hit list targeting senior politicians in a feud over a woman.
Arsalan Tariq Khawaja was arrested in Sydney on Tuesday following a counter-terrorism investigation into the document which was allegedly found at the University of NSW in August.
It allegedly outlined threats to kill former prime minister Malcolm Turnbull, former foreign minister Julie Bishop and attacks on a number of iconic sites.
Khawaja's colleague Mohamed Kamer Nilar Nizamdeen spent four weeks in jail - including a night in Goulburn's Supermax - after being charged with creating a document in connection with preparing for a terrorist act.
Mr Nizamdeen, 25, was released on bail in late September and charges were dropped last month.
The UNSW contractor has returned home to Sri Lanka and plans to sue for compensation.
Khawaja, 39, was taken to Parramatta police station on Tuesday and charged with attempting to pervert justice and making a false document.
He was granted bail in Parramatta Local Court on several conditions and made no comment to waiting journalists as he left the neighbouring police station.
Assistant Commissioner Mick Willing had earlier told reporters there was no information to suggest any ongoing threat to the community.
He said Mr Nizamdeen's arrest was regrettable and police had paid his court costs, but stopped short of apologising.
"We feel very sorry for him and what was happened to him but what we will be alleging is that he was set up in a planned and calculated manner," he told reporters in Sydney.
"Motivated, in part, by a personal grievance."
Asked whether that grievance was over a woman, Mr Willing said: "We will allege that that is part of the process".
He said the matter was complicated and had taken up an "enormous" amount of resources.
Australian Federal Police Assistant Commissioner Ian McCartney said he stands by the decision to arrest Mr Nizamdeen at the time, given the "serious threats to a number of high-profile politicians and a iconic sites" in the notebook.
"At all times we've acted in good faith, we've acted expeditiously," he told reporters.
Usman Khawaja has asked for privacy for himself and his family.
"Out of respect for the process it would be inappropriate for me to make any further comments," he said on Tuesday while preparing for Australia's first Test against India in Adelaide.
His brother's bail conditions included a $50,000 surety, that he report to police three times a week and that he not go within 100 metres of UNSW's Kensington or Cliffbrook Kensington campuses.
His matter is next due in court in February 2019.