Michael Zeiser has been accused of warning a man who started questioning him to "step back", then pulling out a 29cm knife which was strapped to his torso with a belt and holster, Wollongong Local Court heard yesterday.

When officers asked Zeiser about the weapon, the 20-year-old allegedly told police: "Everyone carries this stuff; that's what we do these days," facts presented before the court said.

Police claim Zeiser broke into an Albion Park property about 3am on Saturday, mounting a fence before removing a window flyscreen and climbing into the garage.

It is alleged he stole more than 20 bottles of alcohol from a fridge, passing the items to another man before he climbed back out the window.

Police arrived a short time later and spoke to a male witness who said he was out looking for other suspects when he saw a car parked on the side of the road, the facts stated.

When he went over to speak to the occupants, he allegedly saw Zeiser running from the house towards the vehicle and immediately questioned him, asking Zeiser where he had been.

Police claim Zeiser then walked up to the man and said "you better step back, mate" before he reached into his shirt and pulled out the knife.

Officers disturbed Zeiser and he allegedly threw the knife into the car where it was later seized with the still-cold bottles of alcohol.

Police later discovered Zeiser was on bail for an unrelated offence and had been ordered to abide by a curfew, requiring him not to be absent from his home between 10pm and 6am.

He was charged with breaking, entering and stealing, having custody of a knife in a public place and breaching bail.

Opposing bail, prosecutor Sergeant Anna Comer cited the strength of the Crown case.

Magistrate Michael Stoddart refused bail and adjourned the case to March 6.