A Melbourne man accused of trying to flee Australia by boat to fight for Islamic State said dying and going to paradise would be like taking a shortcut in a Super Mario video game, a court has heard.

Paul Dacre, 31, has been denied bail after police told the Melbourne Magistrates Court they held grave concerns he would commit a terrorist attack if released.

The Epping man is one of five accused of towing a boat from Melbourne to far north Queensland in May with the intent of sailing overseas to fight with the Islamic State group.

They are each charged with making preparations for incursions into foreign countries for the purpose of engaging in hostile activities.

Dacre a 'grave threat', court told

Federal agent Jake Samson told the court police now believed the group was planning to travel to the southern Philippines to fight with militant groups aligned with Islamic State.

He said police had covertly recorded Dacre telling a friend he was intent on travelling to a conflict zone, likening it to advancing in a video game.

"We should be over there fighting. If we die ... that is like an instant ticket to paradise," he allegedly said.

"It's a shortcut ... it's like in Mario there's a thing you can get a whistle and you can go to another area immediately, it's like that."

In an affidavit tendered to the court, agent Samson said Dacre posed a grave threat to the community.

"It is likely the applicant considers that he is under an obligation in accordance with his extremist ideology, to commit acts of terrorism or violence within the Australian community," he said.

"The desire to travel to a conflict zone ... further indicates that the applicant is willing to put his life at risk for his extremist beliefs."

But defence lawyer Charlie Atlas told the court Dacre no longer held extremist views, if he ever did.

"The police in this case are embellishing," he said.

"He's needed at home for his own family, he's not a danger."

But the magistrate found Dacre's case did not constitute exceptional circumstances and denied his application for bail.

He was sent back to protective custody and will return to court later this month.