A "frightened" and tearful Hannah Quinn, the 23-year-old woman charged over the alleged samurai sword murder of Aussie rapper Jett McKee has been granted bail.

Quinn appeared to sob silently, gasp for oxygen and wring her hands as she sat in Sydney's Silverwater Women's Correctional Centre as a dramatic new account of the fatal attack was given in Newtown Local Court.

Prominent Sydney barrister Tom Hughes told the court that hip hop artist McKee was a poker machine addict who had carried out a violent home invasion while wearing a balaclava prior to his alleged murder.

A blood-smeared car at the scene. Photo / via 9 News
A blood-smeared car at the scene. Photo / via 9 News

Hughes told the court that McKee had threatened to shoot Quinn and was armed with a replica gun.

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It also emerged that Quinn has been charged with a second alleged offence of accessory after the fact of murder.

The accused's mother Megan Quinn, was present in court with the accused's two brothers and father.

Quinn was charged with her boyfriend, actor and martial artist Blake Davis, 28, after a massive manhunt last weekend following the discovery of McKee's body lying in a street intersection last Friday.

The 30-year-old hip hop artist known as Scepaz was found dead from a massive head wound on the road at Forest Lodge in Sydney's inner west.

Hughes said that on the morning of the alleged murder McKee, who he said had borrowed money to pay off a A$31,000 gambling debt at Sydney's Star casino, had met up with a second man who is known to police.

Wearing black clothing and gloves, and armed with pepper spray, a fake gun, knuckle dusters and the balaclava, at 12.40pm he entered Davis' Forest Lodge home where Quinn was staying, Hughes told the court.

Quinn, who had just returned from a shop with food and coffee, saw McKee and said, "who the f*** are you?", Hughes alleged.

He said it was in police facts that neighbours overheard Davis saying, "there's no money here".

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McKee then allegedly punched Davis in the face with the knuckledusters and fled with a bag from the flat.

Quinn then pursued McKee down the street followed by Davis armed with the samurai sword, police allege.

Police allege Quinn pushed McKee to the ground, but Hughes said that she tried to grab his jacket and he fell.

Hughes alleged that Davis then "swung the samurai sword downwards impacting on [McKee's] skull".

Quinn appeared to sob silently, gasp for oxygen and wring her hands as she sat in Silverwater Women's Correctional Centre. Photo / Supplied
Quinn appeared to sob silently, gasp for oxygen and wring her hands as she sat in Silverwater Women's Correctional Centre. Photo / Supplied

He said it was in police facts that Quinn then said, "what the f*** have you done?".

Hughes claimed "this eradicates any preconcert", referring to the police case that the alleged murder was a joint criminal enterprise between the two accused.

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Police will allege Quinn and Davis then escaped to a nearby alcove and hid.

Hughes said McKee staggered from the site where he was struck and then further to a garden before finally stumbling to the road where he died.

Detectives later found mobile phones, a replica pistol and A$21,000 in cash.

The accused couple then allegedly went home and changed and disposed of the alleged murder weapon.

But Hughes said Quinn feared she might be pursued by others because, he alleged, McKee had threatened her saying, "there's lots more people than me who will shoot you".

Hughes said last weekend, when the police manhunt for the pair was under way, Quinn and Davis had gone from "hotel to hotel" with the male accused "in and out of consciousness" with concussion from the knuckleduster punch.

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Actor and martial artist Blake Davis was also charged. Photo / Supplied
Actor and martial artist Blake Davis was also charged. Photo / Supplied

The accused handed themselves into police who charged them with murder.

Davis was treated at Royal Prince Alfred Hospital for a black eye and facial bruising and has been remanded in custody.

As Magistrate Margaret Quinn agreed to release Quinn on strict conditions, the accused wept into the sleeves of her prison green sweatshirt.

Outside the court, the accused's mother Megan Quinn thanked people "for keeping an open mind" and expressed her sympathy to McKee's family.

Hughes said his client had been "terrified" by her first time in prison and was "delighted" to have been granted bail.

She will be released from Silverwater prison today.

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Davis has not applied for bail.

Both accused will next appear in court in October.