He had spent Monday night in hospital and was being assessed by mental health officers.
Mr McGill told reporters outside court his client was "entirely devastated" by the shock of being charged.
"His health is my primary concern at the moment."
The single charge represents only one of the alleged fraudulent transactions Morehu-Barlow was understood to have made.
He is accused of siphoning off A$16m ($21m) of money earmarked for charities including the Royal Flying Doctor Service, Cancer Council Queensland and the Cerebral Palsy League.
The Queensland government has frozen about A$12m of his assets.