Larsen had objected to his nephew waking his dog so he could take its place on the couch.

"You woke her just for that?" he told his nephew, who replied: "I do it every time."

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Larsen was "swinging" the machete as he walked towards his nephew.

Albury Local Court has heard the victim managed to hold-off the machete wielded by Larsen, then told his uncle: "If you don't let it go I'm just going to elbow you in the head and you're going to drop like a bag of sh-- and I don't want that happening."

The victim, who turned 47 two days after the incident on October 23, moved into Larsen's East Street, East Albury, unit three weeks earlier with his son and the dog.

Larsen, 65, pleaded guilty to threatening injury to a person with the intention of committing an indictable offence and was placed on a 12-month conditional release order.

"It's certainly a serious offence before the court," magistrate Richard Funston said.

He noted Larsen's comment that he was using the machete as a "standover tactic" with no intention of inflicting harm.

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