Falle, who represented himself in the proceedings, said he did not object to the residence and drug condition but saw no need to impose an alcohol ban or restrict his travel. His intention was to return to Australia to his family as soon as he was granted permission to do so, and he was due to start a new job, he said.
Judge Ingram said Falle presented as an "exceptional" case as most returning prisoners had more lengthy criminal histories and rehabilitative needs, or had re-offended since their return.
"In Mr Falle's case there is no hint or whisper to suggest in his background there was any other offending and up until his drug offending he clearly lead an otherwise blameless life."
Judge Ingram revealed Falle's fall from grace was sparked after he suffered a serious injury after an altercation in the street and lost the sight in one eye, which inhibited his ability to work.
His drug trafficking was clearly not to feed any drug habit, the judge said.
Judge Ingram said imposing conditions other than the standard residence and drug ban conditions would be severely onerous.
Judge Ingram said that in his view, perhaps a review of the Returning Offenders (Management and Information) Act, under which a supervision regime could be imposed to assist in monitoring deported prisoners who had served more than a year in prison, was warranted.
"This case has taken some five months to get to this point but it seems to me that the best place to deal with these Parole Board-type cases is the Parole Board, or by judges experienced in Parole Board matters, rather than by judges sitting in the civil jurisdiction," he said.
Judge Ingram said having the case dealt with in the civil jurisdiction meant Mr Falle had no access to legal aid and, without the ability to work, no money to pay for legal representation.
A rehabilitative needs assessment should have been undertaken when the interim supervision order was imposed rather than months down the track, he said.
Judge Ingram said he was not prepared to impose conditions on Mr Falle which would override his fundamental freedoms under the Bill of Rights.
"I see no useful purpose in restricting Mr Falle's access to alcohol nor restricting his ability to travel outside New Zealand," Judge Ingram said.
Mr Falle would be subject to the standard special conditions until November 11, 2017, he said.
Judge Ingram told Mr Falle that he wished him the best in his new job and his future endeavours.
"Unfortunately, Mr Falle, you have been a bit of a guinea pig," he said.
Outside court, Mr Falle said he was "relieved" with the outcome after three or four court hearings in Auckland and several in Tauranga, and said he just wanted to get on with the rest of his life.
Minister of Justice Amy Adams was not able to provide a comment in time for this edition.