Momena Shoma, who is accused of shouting 'Allahu Akbar' before she allegedly stabbed her homestay host, 'practised' on a mattress, a court has heard

A burqa-clad Bangladeshi student accused of screaming 'Allahu Akbar' before she allegedly stabbed her homestay host in an act of ISIS-inspired terrorism 'practised' on a mattress, a court has heard.

Momena Shoma, 24, appeared before Melbourne Magistrates Court via video link on Wednesday, charged with engaging in a terrorist act after she allegedly knifed Roger Singaravelu at his Mill Park home on February 9.

Mr Singaravelu, 56, said he felt a 'sharp pain in his neck' when he alleges he saw Shoma leaning over him with a kitchen knife in her hand and shouting the Islamic phrase, meaning 'God is great.'

'There was blood everywhere. I ran outside with my daughter and got the attention of neighbours, who assisted me,' Mr Singaravelu told the Herald Sun at the time.

Magistrate Charlie Rozencwajg told the court on Wednesday Shoma allegedly did a practice run on a mattress at the home of the first Australian family that hosted her.

'They felt intimidated enough to go to whoever organised it ... to say ''We're scared, we don't want her to continue living with us'',' he told the court.

Shoma allegedly knifed Roger Singaravelu (pictured) at his Mill Park home on February 9

The student is accused of stabbing the sleeping 56-year-old host in the neck and shoulder.

Her lawyer says it is unclear whether Shoma's alleged crime constitutes terrorism.

'I'm talking about whether the action of stabbing was done with the intention of intimidating the government or a section of the public,' Guillaume Ballin said.

The defence says the police brief of evidence contains 1,600 pages, including some 400 encrypted messages.

Shoma, 24, appeared before Melbourne Magistrates Court via video link on Wednesday, charged with engaging in a terrorist act. Her Bangladeshi passport is pictured

It's alleged Ms Shoma made full admissions to police after the stabbing and said she was 'acting on behalf of the Caliphate'.

'It's more than political or religious ideology to make out the terrorist act charge,' Mr Ballin said.

'The issue here is whether the act done, or alleged to be done by Shoma, is done with the intention of coercing or intimidating the government or intimidating the public or section of the public.'

Mr Rozencwajg said the student had allegedly discussed the reasons behind the attack.

Mr Singaravelu, 56, said he felt a 'sharp pain in his neck' when he alleges he saw Shoma leaning over him with a kitchen knife. A bloodstained chair is pictured at his home

It's also alleged the Bangladeshi student discussed her radicalisation during a police interview and spoke of her motivations immediately after the stabbing.

'Doesn't she say that she's responding to a call by (IS leader) Baghdadi to attack the Americans and the British and Australians - in particular the ''horrible French people''?' Mr Rozencwajg said.

The magistrate queried why the terror group had singled out the French and a federal prosecutor said it was probably because France had a large Muslim community.

Shoma will face a pre-trial committal hearing on August 1 to determine if she stands trial.