Priscilla Palombi granted bail after being charged over alleged $4 million meth importation

Priscilla Palombi, who faces a potential life sentence, was released on bail on Tuesday afternoon despite opposition from police and prosecutors.

Her barrister, Ken Archer, had earlier told the ACT Magistrates Court the woman would plead not guilty to a charge of attempting to possess a commercial quantity of an unlawfully imported drug.

Ms Palombi, 39, had been behind bars since her first court appearance on November 24.

Police had raided her home a week earlier, allegedly finding she had unpacked the contents of a delivery from overseas and put them in a backpack in her car.

The package contained an inert substance, which authorities had put there to replace methylamphetamine after the Australian Border Force intercepted the consignment on its way into the country on November 3.

On Tuesday, the court heard the package had been addressed to Ms Palombi's home under the name of a former colleague who did not live there.

An investigator, Michael Noble, told the court police suspected Ms Palombi was "motivated by money" to receive the consignment.

It was unclear, however, exactly how police alleged she stood to benefit. A number of possibilities were raised, including that she might merely have been promised a payment, or the wiping of a debt, for taking delivery of the drugs.

Senior Constable Noble said Ms Palombi's co-accused, real estate agent Gerardo Penna, had "all the chemicals and equipment" to extract the methylamphetamine from the activated carbon it was concealed within.

She would now be "out of pocket" as a result of the drugs being seized, the officer said, and therefore potentially motivated to commit crimes if released on bail.

Senior Constable Noble also raised concerns Ms Palombi might seek to interfere with the evidence her wife might give in court.

Federal prosecutor David Bloomfield described the case against the 39-year-old woman as strong, saying she was "facing a serious custodial sentence".

Mr Bloomfield said there was evidence of Ms Palombi and Mr Penna, someone she had known for years, speaking "in coded language" in the days leading up to the delivery arriving.

He said the unemployed woman had "excitedly" called the real estate agent just after the package turned up, with a listening device hidden inside, and encouraged him to visit her home.

While the prosecutor opposed bail, Mr Archer argued his client should receive the benefit of conditional liberty.

The defence barrister said Ms Palombi would probably face a year behind bars before any trial if she was kept in custody.

He also argued there was nothing to suggest she would fail to turn up to court, and dismissed concerns about "financial hardship" potentially motivating Ms Palombi to offend by saying the woman's wife received a "comfortable" salary of $187,000 from the Department of Defence.

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In response to suggestions about interference with witnesses, Mr Archer raised doubts about whether Ms Palombi's wife could be compelled to give evidence against her anyway.

Special magistrate Margaret Hunter ultimately found it appropriate to release Ms Palombi on a series of strict conditions, warning the woman non-compliance would result in "zero" chance of bail being granted again.

The conditions include Ms Palombi agreeing to forfeit $2000 for any non-appearance in court, and her mother giving up a further $10,000 in that event.

Ms Palombi is next due to appear on February 15.

Mr Penna, who has pleaded not guilty to the same charge and an additional count of drug trafficking, was previously remanded in custody until January 13.

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