There is also a slight chance Maythem Kamil Radhi could be at risk from survivors of the sinking of the overcrowded and dilapidated boat in October 2001, a Brisbane magistrate says.

The Iraqi national faced court on Wednesday accused of involvement in the people smuggling operation of 421 persons that ended with 353 drowning, 146 of them children.

Crown prosecutor Sophie Harburg said Radhi was not charged over the deaths but that outcome made his alleged actions more serious.

Radhi, who is charged with harbouring an unlawful non-citizen, a removee or deportee, applied for bail.

Ms Harburg opposed it, saying Radhi was charged with a serious offence that could lead to a 20-year maximum prison sentence.

Other organisers - Abu Quassey and Khaleed Shnayf Daoed - had been prosecuted and imprisoned for their involvement in the expedition, she said.

Magistrate Annette Hennessy said prosecutors believed Radhi could be a "significant flight risk" and able to leave the country undocumented.

Solicitor Ivan Sayad asked for Radhi to be able to stay with his cousin in Penrith, where strict conditions would leave him "essentially under house arrest".

In 2011, the Brisbane Magistrates Court issued an arrest warrant for Radhi.

But the process was delayed while his eligibility for extradition was argued in courts in New Zealand, where he has been living with his wife and three children since 2009.

The court heard Radhi had surrendered last month after deciding to stop pursuing appeals in New Zealand.

Ms Hennessy refused bail, saying there was "substantial motivation" for Radhi to leave Australia since his cousin is his only tie in Australia.

"That would obviously be a fairly strong pull for you to return to New Zealand," she said.

Ms Hennessy said there was also a "less likely" potential that Radhi could be at risk from survivors of the incident.

Radhi's matter is listed for committal mention in the same court on November 15.

Australian Associated Press