A mum who allegedly set fire to her southern Canberra home while she was inside with her two children was taken away for a mental health assessment after appearing in court on Wednesday.
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The woman, who cannot be named by a court order to protect her children's identities, was arrested in NSW and extradited on Tuesday before being charged with arson intending to endanger life.
Documents tendered in court stated a man who woke early on Sunday morning to walk his dog noticed the house on fire.
He told police the front window was completely red and the curtains were ablaze.
The man called emergency services and ran across the street to try and gain access to the house as he saw the woman's car was parked in the carport.
The man had tried to open the front door but the outside security door was locked, he then bashed on a window and repeatedly yelled "your house is on fire".
He had heard the two children crying and then screaming, he told police, and then heard the mother's voice speaking calmly to them.
When ACT Fire and Rescue arrived at the burning house the man had informed them the family was inside, and firefighters entered the house and rescued the mother and two children, who were all unconscious.
All three required CPR and were transported to the Canberra Hospital. The mother was later airlifted to the Concord Hospital in Sydney, while the children were airlifted to Westmead Children's Hospital.
Each of them required treatment for smoke inhalation and the mother and one child were placed in induced comas.
Firefighters deemed the fire was suspicious and AFP forensic officers conducted an examination which determined two potential ignition points on a couch and in a linen cupboard.
A lighter was found in a hallway and investigators allege there was no attempt made to shield any of the occupants from the fire.
The woman's ex-husband told police she had been due to pay him upwards of $175,000 as part of the divorce settlement and the first installment had not been paid.
The police had not been able to get a version of events from the woman or her children due to their medical condition after the fire. But police suspect the woman intentionally lit the fire to endanger herself and her two children, the documents stated.
Prosecutor Maclaren Wall opposed the woman being subject to a special mental health assessment, saying he would oppose bail and she could receive any necessary treatment at the Alexander Maconochie Centre.
However, Chief Magistrate Lorraine Walker determined, based on medical evidence before her, a full mental health assessment was needed.
The woman will reappear in court once the assessment has been completed.