7 News reported that all three men were drinking as they prepared to watch the rugby league State of Origin clash when Bernhard insisted on driving a short distance.
His mates reportedly tried to stop him by lying down at the end of their suburban cul-de-sac.
A tearful neighbour told the Telegraph that all three men were joking around and enjoying each other’s company before the incident.
“All three of them were mates,” she said. “This has been just such a tragic, terrible incident. I’m still in shock.”
Another said she hurried to the street after hearing a “loud thud” and found other neighbours tending to the two men.
Police said that witnesses applied first aid but both men died at the scene.
Bernard did not enter a plea and was granted bail, despite police opposition, with Magistrate Geraldine Beattie telling him there was “absolutely no need for you to be behind the wheel”.
“I am granting you bail today, but you have to be on good behaviour,” she said.
“You cannot drive, you cannot get in the driver’s seat, even if the car isn’t moving, you cannot contact witnesses or prosecution and you must reside at your property in Nowra.”
Bernhard will appear before the court again in August.