District Court Judge Shauna Deane told the court on Thursday she did not think her decision on the burqa would set an Australian precedent as she would only be making a ruling on the case before her.
She was hearing prosecution and defence submissions as to whether the 36-year-old Islamic Studies teacher could wear the burqa, also called a niqab, as she gave evidence.
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Defence lawyers have raised concerns about how the jury is expected to read the woman's facial expressions if they cannot see her face.
Prosecutor Mark Ritter told the court on Thursday the woman wanted to give evidence but would feel uncomfortable without the burqa and that could affect her evidence.
"It goes beyond stress ... it would have a negative impact," Mr Ritter said.
He said the woman, who has lived in Australia for seven years, had worn the burqa since the age of 17 and had only removed it for her family and male blood relatives.
"Female modesty is a very important part of the religion," he said.
The woman is due to give evidence in a fraud trial of a Muslim college director.
On Tuesday the jury in the case was discharged after the estimated time for the trial blew out from 10 days to five weeks, causing attendance problems for five jurors.
A new jury will be empanelled when a retrial is approved.
