The 47-year-old former SAS soldier was sensationally arrested on April 7 and charged with murdering five unarmed detainees while deployed in Afghanistan between 2009 and 2012.
He made an application for bail at Sydney's Downing Centre Local Court on Friday.
Roberts-Smith wore prison-issued green clothing and appeared by audiovisual link from Silverwater prison, only speaking to confirm he could hear the court.
In front of a packed public gallery, defence barrister Slade Howell said his client would comply with stringent bail conditions despite previous Federal Court findings he had threatened or interfered with witnesses.
"The consequence of a breach ... will be that he returns to custody which is a pretty good incentive to not interfere with witnesses," he told Judge Greg Grogin.
While the former SAS soldier had been making plans to relocate overseas, he was not a flight risk and had handed in his passport to authorities, the barrister said.
Mr Howell highlighted the exceptional nature of a highly respected soldier such as his client facing five counts of war crime murder in a civilian court.
The case would be beset with delays and Roberts-Smith needed to be free to build his defence and comply with national security obligations, the barrister said.
He argued that a superior court may have to consider whether the extraordinary publicity surrounding the case has made it impossible for the 47-year-old to have a fair trial.
"The prosecution of these allegations will take many, many years and will have many twists and turns," he said.
Once more evidence came out, a very different picture of the alleged war crimes could emerge compared with the one painted during Roberts-Smith's highly publicised defamation proceedings, Mr Howell said.
"There is a real possibility (my client) will be found not guilty."
Crown prosecutor Simon Buchen SC opposed bail, saying the charges against Roberts-Smith were gravely serious.
The case against Roberts-Smith was strong, and there were eyewitnesses to the alleged murders, Mr Buchen said.
There was also evidence of the use of throw-downs, he said.
Throw-downs are objects placed onto deceased non-combatants to make it seem like they had taken part in hostilities
It was not impossible for Roberts-Smith to defend the case from prison but if it became difficult, he could reapply for bail then, the prosecutor said.
While Mr Buchen acknowledged that bail conditions would prevent the 47-year-old from fleeing the country, he said they could not prevent the risk of witness tampering.
Evidence that emerged in the Federal Court defamation trial included threatening witnesses, distorting evidence and using burner phones to evade authorities, he said.
Judge Grogin will hand down his decision later on Friday.
Roberts-Smith is accused of directly murdering two Afghan individuals and aiding, abetting or procuring the murder of three more.
At Kakarak in Uruzgan Province in April 2009, Roberts-Smith allegedly ordered a subordinate to kill Mohammed Essa, court documents reveal.
He also allegedly murdered another unarmed civilian, Ahmadullah, during that same raid.
Roberts-Smith allegedly ordered the murder of another man, Ali Jan, during a raid on the village of Darwan, also in Uruzgan Province, in September 2012.
The remaining two charges relate to incidents in Syahchow, Uruzgan where Roberts-Smith is accused of jointly murdering an unnamed Afghan prisoner with another soldier and ordering the execution of another
War crime allegations against Roberts-Smith were first exposed by the now Nine-owned Fairfax Media in 2018.
The war veteran sued the paper for defamation in the Federal Court but suffered a crushing defeat with a judge finding the accusations of murder were, on the balance of probabilities, true.
He failed to overturn these findings on appeal to the full Federal Court and the High Court.
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