That Matthew Stanley McGann did not follow up on his online application or receive any funds did not help him avoid more jail time on Monday, June 22 in Batemans Bay Local Court.

McGann, 26, of Joseph St, Batehaven, has been in custody since March 3 and appeared via audio-visual link from the South Coast Correctional Centre, Nowra.

In imposing a two-and-a-half year aggregate sentence for the false claim and three counts of drug supply, Magistrate Doug Dick said the community expected strong action from the courts in such cases.

He imposed a non-parole period of 18 months, backdated to the time of McGann's arrest.

Entering guilty pleas, defence solicitor Adam Sumbak acknowledged the offences were serious and said his client described his own actions as "despicable".

However, he said McGann had not pursued his January 28 application for bushfire relief, despite follow-up calls from the Red Cross, and had shown "a complete absence of sophistication".

"He used his own name and his own address," Mr Sumbak told the court.

"When he was followed up by the Red Cross, he did not take the matter any further."

Police facts tendered to the court showed the Red Cross had twice tried to pursue the application, but McGann had not responded.

"He received no funds," Mr Sumbak said.

Mr Sumbak told the court his client's telephone "ice" transactions showed a similar lack of sophistry.

"There was no attempt to code ... no form of sophistication," he said.

McGann was initially charged with supplying 150 grams of "ice", but this was downgraded to 0.5 grams; another charge of supplying 8 grams of the drug was revised after analysis to 3.9 grams. A third charge related to 3 grams.

Mr Sumbak acknowledged his client was on bail at the time of the offences but said he had "no history of dishonesty or supply matters". An earlier drug possession charge had not resulted in a conviction being recorded.

He said his client suffered from a serious mental health disorder and was a victim of childhood trauma, but had been previously "fully employed in disability support". A period of personal crisis in 2019 had caused a serious deterioration in his health, which his doctor had noted.

Arguing for a non-custodial sentence, Mr Sumbak said his client "had sought out treatment and could be rehabilitated".

"It is his first time in custody; he has said to me it has been horrendous," Mr Sumbak said.

He asked the court to consider special circumstances and impose an intensive corrections order, rather than a full-time custodial sentence. Alternatively, he asked the court to count the time his client had already spent in custody as a minimum non-parole period.

Police prosecutor Sergeant Rob Hough did not agree, arguing McGann's actions had hurt the community and he had admitted to three separate counts of supplying "ice".

In one case, the transaction had been purely for "financial gain", after negotiating to sell 0.5 grams of ice for $150.

Regarding the online application for a $20,000 grant from Red Cross, Sgt Hough told the court it "caused widespread outrage".

"The emotional harm to the community is significant."

The prosecutor told the court the application demonstrated planning.

"It would have taken some time to complete the application online," Sgt Hough said. McGann had uploaded identifying documentation to support his claim.

"It was not spur of the moment," Sgt Hough said.

He said such cases caused delays for genuine bushfire victims, as charities had to vet them to "ensure people applying were entitled".

"Those funds were delayed in reaching those people," he said.

Sgt Hough said McGann had only a "guarded prospect" of rehabilitation.

He told the court treatment for McGann's mental health issues prior to his arrest had not "diminished offending behaviour", and it had escalated "from possession to supply and attempted fraud".

He acknowledged that some substances seized "were not found to be drugs", but said "the community expects and requires a full custodial sentence".

"Anything less would be manifestly inadequate."

McGann told Magistrate Dick: "I am really sorry, your Honour, I really am."

"It's a bit late for that ... my job is to punish you, not forgive you," Magistrate Dick said.

Regarding the supply of ice, Magistrate Dick said: "If it was not for people like you doing that, we would not have the problems we have."

McGann had become a father while in custody.

"I just want to see my baby," McGann told the court.

"I accept there is a link between mental health and offending," Magistrate Dick said, but "the community would regard your actions as despicable".

He acknowledged the drugs seized were "not large amounts".

However the online application and the supply offences were "a course of conduct you undertook knowing it was wrong".

"I feel jail is appropriate," Magistrate Dick said.

"You were preying on the good hearts of the community and the charity.

"You were robbing the needy of money for emergency purposes.

"You were attempting to reduce the pool of money for those who really needed it, who were suffering.

"You offended common decency.

"People who do that are not going to get an easy passage through the courts.

"It does not help you were on bail at the time."

Regarding rehabilitation, Magistrate Dick said he was sure McGann now knew "there was no future in a green tracksuit".

"I have no doubt it has been a wake-up call," he said.

He imposed a head sentence of two-and-a-half years, backdated to the time of McGann's arrest on March 3.

Acknowledging special circumstances, he imposed a non-parole period of 18 months.

According to police facts tendered to the court, suspicions were aroused on February 20 when officers pulled over McGann's vehicles and, upon checking his phone, noticed references to the Red Cross.

"When investigators were looking at the phone, the hand set was remotely wiped and the data containing references to the red Cross could no longer be viewed," police said.

Detectives approached the Red Cross and discovered details of the application.

Via telephone intercepts, police tracked texts and conversations about prohibited drugs.

McGann's vehicle was stopped on February 20 and police located a pipe, which McGann said was for burning incense.

He was strip-searched in a caged police vehicle and four bags of a substance totalling 3.9 grams were found in his underwear. White crystals in foil, scales, lighters and about 100 empty plastic bags were found in a toiletry bag. McGann was cautioned on these matters, but was arrested in a subsequent raid of his home on March 3 and charged with publishing false misleading material to obtain property.

Mr Sumbak said he would appeal on behalf of his client the severity of the sentence.