Joshua Kerr, who was supported on Wednesday by his father in the Ballarat Magistrates' Court, did not enter a plea on the related charges.

It was alleged on June 15 last year Kerr was intercepted by police at about 3.40am driving on Alfred Street in Sebastopol.

"The accused appeared nervous and jumpy ... he was known to one officer from previous dealings," the police prosecutor told the court.

"As a result of that his vehicle was searched."

The search allegedly turned up a .22 Lithgow bolt action long arm rifle shortened to 53cm with a silencer, eight tablets of ecstasy, a gram of methylamphetamine, a double edged knife, two knuckle dusters and an ice pipe.

The court was told when Kerr emptied his pockets after getting out of the car, he was found to be carrying a number of .22 rat shot bullets.

"The accused stated the drugs located in vehicle did not belong to him and the gun was used to shoot vermin," the police prosecutor said

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Magistrate Letizia Torres said while she noted the positive psychological report submitted to the court, she held concerns over Kerr's return to offending if something challenging happened in his life.

But Kerr's drug and alcohol counsellor said he was doing well and was drug screened at every session across seven different drug groups.

"He's been negative on every test," the counsellor said.

"I believe he has matured as a person, I believe he's developed strong strategies to cope with life ... I don't appear in court very often and I believe Josh is one of those people that deserves a chance."

Ms Torres indicated she would sentence Kerr to a lengthy community corrections order - where he could be monitored living within the community - and required a more comprehensive assessment to decide the specific conditions of the order.

"This is a very difficult case because this sort of offending is so extremely serious ... it is a jailable situation," she said.

"I can see you've made extensive efforts in your rehabilitation and the success you've achieved ... I think you've been a lucky man today, you've done the work and you've presented well.

"I do consider this a merciful sentence."

The matter will return to court on August 26.

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