The teenager was granted bail in a Children's Court on Wednesday with strict conditions, including daily reporting, a curfew and not to drive a car.

The police prosecutor told the court cancer patient Ian Wasley's 2012 Nissan X-Trail was stolen from his Sebastopol home overnight on March 9.

He said police saw the stolen car later the same day in Wendouree with the accused seated in the back.

"It refused to pull over, driving into oncoming traffic," the police prosecutor said. 

The court was told after two alleged petrol drive-offs and erratic driving, police tried to arrest the accused but he fled and was unable to be located.

Three days later on March 12, police allege the teenager and a group of others asked a taxi driver to take them from Ballarat to Lucas Safeway supermarket.

The prosecutor said the group pre-paid the driver a bag of loose coins and $20 but before reaching the destination, they asked to be dropped off.

He said the teenager took the bag of coins and spat on the driver before leaving. The taxi driver followed but the teenager allegedly produced a knife, charged at him and pushed him to the ground.

The court was told the teenager was arrested and taken to the police station for interview.

Police opposed bail because the boy was on bail for an alleged aggravated burglary.

"The offending is on a high scale because the victim of charges one and two is of ill health and requires radiation. He is of the belief the accused should stay in custody," the prosecutor said.

The magistrate bailed the teenager to appear in a Children's Court in April but warned him if he breached his bail conditions, he would not be bailed again.