The child sex abuse material involved photos and videos of preteen and teenage boys and girls in suggestive poses or taking part in sex acts, according to court documents.
If found guilty of the terrorism material charges, Madams will join a small group sentenced already.
In 2016, Imran Patel was the first person in New Zealand convicted possessing, making and distributing the objectionable material and was sentenced to three years and nine months' jail.
Police found 62 objectionable videos showing extreme violence or cruelty, as well as copies of an Isis-endorsed online magazine, when they searched Patel's home in 2015.
Activity supporting terrorist activities, including fundraising, is an offence under the Terrorism Suppression Act.