On Wednesday, Khalid made a brief appearance via audio visual link at Parramatta Local Court.
His lawyer, Adam Houda, didn't apply for bail on his client's behalf.
"There's no application for bail," Mr Houda told the court.
Police allege Khalid possessed documents connected with facilitating a terrorism attack.
In the brief hearing, a lawyer for the commonwealth said bail "must not be granted" to Khalid unless the court was satisfied "exceptional circumstances" existed.
Khalid, dressed in a purple T-shirt and sporting long black hair, listened quietly and attentively during the hearing.
He was supported by a number of family members in court.
The matter was adjourned for mention to Sydney Central Local Court on February 18.
Police earlier said a 20-year-old man had been charged with possessing documents listing "potential Federal and State government targets" for an alleged attack.
The arrests come more than a week after a cafe siege in Sydney left two innocent people dead.
Australian Federal Police deputy commissioner Michael Phelan said there was no specific terrorist threat. "This is part of ongoing activity," he said.
Australia's terrorism threat level remains high, meaning a terrorist attack is likely, but not imminent.
Mr Phelan said the group under investigation had no contact with Sydney cafe siege gunman Man Haron Monis.
Earlier, Prime Minister Tony Abbott urged Australians preparing for holidays to be alert, warning that a terrorist attack was likely.
Security agencies had picked up a heightened level of "terrorist chatter" following the Sydney siege tragedy, in which two hostages and Monis died.
Watch: Police raid siege cafe
Mr Abbott urged the public to go about their lives as normal but report any suspicious activity to the national security hotline.
Police and security agencies will be active and visible through the Christmas holiday period.
- AAP and Daily Mail
