Wade John Homewood successfully appealed to the state's highest court to have his sentence reduced, it can now be revealed.

The 38-year-old will now be eligible for parole in August - two months earlier that his original sentence - after he was jailed for making thousands of "extremist right-wing" social media posts advocating acts of violence.

The NSW Court of Criminal Appeal (CCA) determined there had been an error in Homewood's sentencing and quashed orders of the district court judge in Sydney.

Homewood's case was moved from Tamworth court for security reasons for sentencing to the district court in Sydney where he was sentenced in February, this year, to more than two-and-a-half years behind bars.

Homewood's defence barrister then lodged the appeal on two grounds, including that the sentence was manifestly excessive.

He asked for his client to be re-sentenced to an intensive corrections order (ICO), or jail term to be served in the community.

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But the three appeal judges in the CCA found "that it is not an available sentencing option in this case" because of the terrorism offence.

The appeal court heard more than a month after Homewood was sentenced, he was re-sentenced by the same judge in chambers, not in open court.

The appeals court found the judge had made an error in re-sentencing.

The lengthy judgement by three judges setting out the reasons for the appeal detailed that Homewood's online activities had "encouraged him to begin 'stockpiling' a raft of goods in order to survive" but he had "denied having any intention of using firearms or ammunition for any criminal activity".

The appeal judges agreed with the district court on the seriousness of the offending, and found Homewood's "mental health issues led to the applicant 'going online to seek solace, connection, distraction and reinforcement' and in that sense it was a contributing factor to the commission of the offence".

The judges said the fact Homewood admitted to making the prolific online posts "under the influence of alcohol does not mitigate his offending behaviour".

"The offending was carried out over a period of 31 months, which bespeaks a determination and on-going commitment to engage in that behaviour, which only ceased with the intervention of the joint terrorism task force," the CCA judge said.

"There is evidence of regret by the applicant for committing the offences, but in my view, not of remorse."

The court said Homewood had the support of his family, and together with medical help and ongoing rehabilitation, he could overcome his "deep social isolation".

The court re-sentenced him to a jail term of two years and four months, backdated to his 2021 arrest. The minimum time behind bars is one year and nine months.

After time served, Homewood will be eligible for parole in August.

Homewood pleaded guilty to the charge of intentionally advocating the doing of a terrorist attack, or the commission of a terrorism offence, between March, 2019, and November, 2021.

The district court had heard the online posts were described as "extreme and vile" and "deeply disturbing", with the judge refusing to detail the offending.

Homewood was arrested on November 23, 2021, after counter-terrorism officers raided his parents' East Tamworth home where he lived.

The arrest came after a joint investigation involving the Australian Federal Police, NSW Police, the Australian Security Intelligence Organisation and the NSW Crime Commission.

An analysis of his electronics revealed thousands of online posts, photos and videos which advocated violence against certain groups and individuals, including on an account with close to 1500 subscribers.

During the police raid, officers uncovered more than 8300 rounds of ammunition stockpiled in his bedroom, as well as "various publications associated with right-wing extremism", including a manual on homemade explosives.

Police also discovered eight guns stored in a firearms cupboard in an internal stairwell of the East Tamworth home, including five bolt-action shotguns, two break-action shotguns and a .22 calibre pump-action rifle.

Homewood was licensed and legally allowed to have them in his possession at the time.

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