An accused far-right extremist spoke often about bombing two left-wing groups in Melbourne and said any innocent bystanders hurt would be "casualties of war", an associate says.
Phillip Galea is charged with making preparations for terrorist attacks on the Melbourne Anarchist Club and Melbourne Resistance Centre between November 2015 and August 2016.
The 33-year-old is facing a committal hearing in Melbourne Magistrates Court to determine if there is enough evidence for him to stand trial.
Darren Norsworth, who was associated with Galea through right-wing group Reclaim Australia, gave evidence on Monday, saying he first believed he was only joking about bombing buildings
But Galea kept going on about it and the way he spoke gave the impression he was serious, Mr Norsworth said.
"I said if you blow up the buildings innocent people walking past would get hurt," Mr Norsworth told the court.
"That's what made made me click and think this guy is bloody nuts.
"I couldn't turn a blind eye."
Mr Norsworth said Galea also spoke often about a document he called the 'Patriots Cook Book' that outlined different ways to "hurt the left".
"Any chance he got he would go on about this stupid cook book," Mr Norsworth said.
"One of the things he had was how much battery acid to inject into a lefty.
"He thought it was important to show the right wing how to hurt the left."
Mr Norsworth said Galea had also obtained blueprints of the buildings he was allegedly planning to bomb.
Galea is also charged with collecting or making documents to prepare for terrorist acts between September 2015 and August 2016.
His mental state was previously examined to determine if he was fit to stand trial and in February the courts deemed him to be fit.
Galea has been in custody since August 2016 and his committal hearing continues.
Australian Associated Press