Steven Joseph Smith-Ince, 43, is accused of vandalising the Police Wall of Remembrance at Sydney's Domain in the early hours of Saturday.
Officers deployed as part of the Australia Day celebrations saw words like 'evil' and 'dogs' scratched into the stone memorial on Sunday.
An investigation was commenced and Smith-Ince was arrested at Glebe light rail station on Monday.
Words like 'evil' and 'dogs' were scratched into the stone memorial. (Steven Markham/AAP PHOTOS)
He has been charged with destroying or damaging property and committing an offensive act on a war memorial/interment site.
He appeared at the Downing Centre Local Court by video-link from Surry Hills police station on Tuesday when he made an application to be held at a mental health facility in Sydney's eastern suburbs instead of jail.
"Mr Smith-Ince is unwell, he's not coping," Aboriginal Legal Service solicitor Arley Toyne told the court.
The 43-year-old told Magistrate Greg Grogin that he had been seeing his general practitioner and a psychiatrist for a year after moving to Sydney from Western Australia.
A Justice Health report from June 2024 diagnosed Smith-Ince with PTSD as well as bipolar affective disorder.
However, Mr Grogin noted there had been no psychological assessment conducted more recently and that the 43-year-old appeared alert and aware when speaking in court.
"He didn't appear to me to be a person who was mentally ill or disordered in my layman's view," the magistrate said.
Smith-Ince will remain behind bars until his return to court on February 11 when he has to plead guilty or not guilty to the charges.
On Monday, NSW Premier Chris Minns called the alleged vandalism shocking, appalling and odious.
"One of the only things that the state can do is to ensure that those that have given their lives are treated with honour," he told reporters.
"And to disrespect that honour by this individual is truly shocking."
While police are working with Sydney City Council to repair the damaged memorial, Mr Minns could not say when this would be completed.
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