A former army major accused of killing his wife while kayaking on a south-east Queensland dam almost five years ago will be released on bail.

Jacqueline Davidson, 54, drowned at Lake Samsonvale in November 2020.

Her death was initially considered an accident, but following a coronial investigation Graeme Davidson was charged with her murder earlier this year.

The 55-year-old was also charged with fraud and attempted fraud in relation to two insurance claims he made on her life insurance totalling more than $1 million dollars.

Mr Davidson, who was arrested in Queensland on a return visit from his new home in Thailand, applied for Supreme Court bail in Brisbane last week, which was granted on Friday morning.

Justice Tom Sullivan told the court he was satisfied conditions would ameliorate any risk of Mr Davidson failing to appear in court, committing further offences, and interfering with witnesses.

“The case is a circumstantial one,” he said.

“I agree with what has been accepted by the crown that it cannot be described as a strong crown case.

“However, even though the evidence may be at a relatively mature stage on my assessment, it should be treated as neutral.”

A head shot of a smiling man. A palm tree next to him.

Mr Davidson was granted bail in the Supreme Court in Brisbane. (Supplied)

Passports surrendered and travel restrictions put in place

During his bail hearing, which was held across three days, details about the couple’s relationship history and what Mr Davidson told police happened on the day she died were revealed in court.

The court previously heard Mr Davidson said he and his wife had been kayaking for about three hours when Ms Davidson entered the water after becoming panicked when he stood up.

He said he retrieved her and made resuscitation attempts whilst ferrying her on one of their kayaks to a boat ramp, where he asked passers-by to call for help.

kayak at Samsonvale 2020

Jaqueline Davidson’s death while kayaking on Lake Samsonvale in 2020 was initially considered an accidental drowning. (ABC News)

Mr Davidson’s lawyers argued there was no direct evidence his client killed Ms Davidson, and prosecutors could not rule out that she had died by accidental drowning.

The prosecution alleges he deliberately caused her death, as the couple were having marriage troubles due to him being unfaithful some years prior.

Mr Davidson, who has been in custody since his arrest, will have to abide by several bail conditions.

That includes a night curfew, daily reporting to police, surrendering both his Australian and British passports, and travel restrictions within Queensland.

A surety of $250,000 was also provided by his daughters who have been supporting him throughout the hearing in court.