Thomas Anthony Novella, 33, was granted bail in Wollongong Local Court on Wednesday after spending more than two months on remand on a charge of wound person with intent to cause grievous bodily harm.

Documents tendered to court alleged Novella escalated an ongoing dispute when he confronted a man at his Russell Vale home about 7.30pm on May 10.

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The man went outside to the electricity box after the power went out and as he walked back to the front door, realised the word "scum" had been spray painted on his garage door.

Later that night, the man reported the graffiti to police. When he was retrieving his security footage, he noticed a blue-coloured silhouette at the front door, thinking police had arrived, he opened it to allegedly find Novella standing outside.

Novella was allegedly standing in the front yard on the grassed area and would not respond when the man tried to talk to him and instead allegedly ran across the road to a white Audi where he removed a black-coloured sword.

Novella allegedly turned back towards the man and held the sword above his head before removing it from its sheath, exposing the blade.

Other members of the family were standing at the front door and Novella allegedly started to walk towards the house before the man grabbed a wooden step ladder to use as protection.

Novella allegedly started running at the man and his family holding the sword and the man met him on the lawn as they both swung at each other. Novella allegedly struck the man, causing two cuts to his forearm and chest.

Novella allegedly dropped the sword and the pair started to wrestle on the ground before Novella yelled threats including, "I know where you live, I'll come back and kill the lot of youse".

Police soon arrived and handcuffed Novella, who had a cut to his head. Both men were taken to Wollongong Hospital before Novella was released and charged.

Police said Novella's actions were "premeditated", adding he had more than 10 years' training as a Budokai Samurai martial artist.

In court on Wednesday, defence lawyer Matt Ward said his client was previously granted bail the day after the alleged attack but was then caught drink-driving and out past his curfew. He was put back in custody.

Mr Ward said Novella had underlying mental health conditions that he needed to continue be treated for and it was his first time in custody.

Mr Ward proposed Novella essentially be under house arrest at his home in Sutherland, however Magistrate Claire Girotto only agreed to release Novella if his mother moved in with him to help ensure he complied with his bail conditions.

Magistrate Girotto ordered Novella not drink alcohol or take drugs, not go into Wollongong and abide by a curfew.

The case was adjourned to September 1.

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