An accused synagogue arsonist has been released on bail after a magistrate found 22 strict conditions could reduce his risk to the community.

Giovanni Laulu, 21, watched via video link from Barwon Prison as magistrate Leon Fluxman handed down his decision in Melbourne on Friday afternoon.

It's alleged Laulu and two others used 100 litres of fuel to set fire to the Adass Israel Synagogue in Melbourne's south-east about 4.15am on December 6, 2024.

The trio allegedly drove to the Ripponlea site in a stolen Volkswagen then smashed their way in using an axe before setting the place of worship alight.

The blaze, which caused more than $20 million in damage, was being investigated as a terrorist attack, the court was told.

Prosecutor Diana Karamicov argued Laulu should be refused bail bec

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