A woman believed to be from Taree faces up to 12 years in jail on drug possession charges.
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According to Nine News, Kim Anne Alloggia, was arrested in Bali on Saturday, March 2 after local police officers seized a parcel sent to her that allegedly contained marijuana liquid.
Police claimed they found the substance, weighing 0.57 grams, in a parcel that also contained fabric dye.
The parcel was allegedly sent to Ms Alloggia by a friend from America.
Police also claimed it was then collected from a post office by Ms Alloggia's Balinese business manager and taken to her home in Seminyak.
Ms Alloggia's lawyer said her friend offered to send an alternative medicine for a liver condition and was unaware the parcel contained drugs.
Nine News reported earlier this month the 51-year-old was being held at Denpasar Police Station.