Sydney NYE death threat maker gets bond

A mentally-ill man who made threats about conducting a "mass casualty attack" at Sydney's Martin Place on New Year's Eve has been given a two-year good behaviour bond.

Damien O'Neil was arrested at Sydney airport in December and later charged by counter-terror police after posting what he says were hoax threats to his blog during a family holiday in England, Central Local Court heard.

The 40-year-old on Thursday pleaded guilty to making the threats before being given the bond by magistrate John Favretto.

According to court documents, O'Neil had posted several items on his LiveJournal blog "threatening to kill and inflict bodily harm on unknown persons".

O'Neil suffers from bipolar and admitted to a number of posts threatening harm and death to people at Martin Place during celebrations on December 31, but claimed they were not genuine, the court heard.

In sentencing him, Mr Favretto said a good behaviour bond would provide the best outcome for the community and O'Neil, as he would remain under supervision.

O'Neil, who has been in custody for a month since being arrested, didn't react as the sentence was imposed during a brief hearing.

He was returning to Sydney when he was arrested by NSW Police Terrorism Investigation Squad officers on the basis of information from the public, police said at the time.

A home in Chippendale and a storage facility were searched and items including documents and hard drives were seized following his arrest.