A teenager accused of an "unsophisticated" early morning break-in at Mount Warrigal alongside her partner and friends has been bailed to an address 580 kilometres away.
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Kimberley Simpson, 19, has been charged with a single count of aggravated break and enter with intent after the alleged home invasion on March 9.
Her three co-accused, Jamain Russell, 22, Ashleigh Ball, 27, and Maddison Ramsay, 22, remain behind bars and are each yet to enter pleas to the same charge.
Police allege CCTV cameras capture the group staking out the address with their faces on display before they broke in through the back by cutting a screen door about 3am.
A woman and her two children were inside the home sleeping.
It's alleged the group turned on the lights and rummaged around the house for cash, while Russell was armed with a knife.
Ramsay, who allegedly previously lived at the home, directed others where it was thought cash would be.
The occupant awoke while Russell was allegedly searching under her bed with a knife in hand. The three others allegedly entered and demanded to know where the cash was.
Police allege the woman got out of bed and confronted Russell, grabbing the knife, before feeling pain in her right hand. Ball allegedly struck the woman twice.
The group continued to search for money and found little beyond coins and a Nintendo Switch console.
CCTV cameras inside the house allegedly capture the group's movements, as well as the cries of the two distressed children who had woken up.
It's alleged Ball and Simpson said to the woman that if any of the footage made its way to social media, they would return to "stab you and burn your house down".
It is unknown who said the alleged threat, Simpson's defence lawyer Caitlin Drabble said during her bail application at Wollongong Local Court on Friday.
Ms Drabble described the alleged break-in as "very unsophisticated", however added Simpson's alleged role was the most limited out of the four.
She added Simpson lives with multiple mental illnesses including depression, schizophrenia, bipolar, and also has ataxia syndrome - which causes impaired coordination due to nerve damage.
Magistrate Robert Rabbidge opted to grant Simpson bail under the conditions she live in Armidale with her sister, not enter the Illawarra, and not contact any prosecution witnesses or co-accused.
She is restricted from leaving the home unless in the company of her sister, except for legal and medical appointments.
Ms Drabble said no admissions have been made yet but the matter will likely proceed to sentence.
The case will return to court on May 8.