Officers were called to evict Martin Goose, 57, from the 2.4-hectare Denmark Street property about 3.30pm.

When first asked to leave, Goose appeared compliant and began to assemble his belongings, Port Kembla Local Court was told on Sunday.

However his demeanour changed and he became aggressive, the court heard.

Police allege that Goose was holding something behind his back, before he revealed what appeared to be a pump action rifle which he held across his chest and then to his chin.

The actions caused one police officer to stumble backwards over a log.

Attending officers retreated and they were joined at the property by further general duties officers and tactical assault police who established a perimeter around the property.

About 5.30pm the police helicopter located Goose next to his blue Mitsubishi van with his hands in the air.

He surrendered and it was revealed the weapon was a fake gun.

Police allege Goose told arresting officers he wanted them to shoot him in the head.

The court was told he was taken to Wollongong Hospital for a mental health assessment where he was cleared.

He was later charged with assaulting police and trespass.

Opposing bail on Sunday, police said they feared Goose could be a danger to the community, police and himself.

Also of concern was the fact he had no fixed address, no friends or family and was not on any mental health medication.

However with no criminal record, Goose was allowed bail on condition he provide a permanent address to officers by 4pm on Monday, and that he not return to the Wombarra property.

The matter will return to court on August 18.