Plumber's confession over the brutal murder of his elderly neighbour was just a dream, court hears - as jury told brother may have 'misheard' him

A man accused of bashing an elderly woman to death and torching her body may have only told his brother he 'dreamt' about committing the crime, a jury has heard.

Brian 'Bert' Barnes, 67, is accused of murdering Merril Kelly, 76, in the dead of night in the tiny Victorian farming town of Quambatook.

Her body was discovered when emergency services were called to a blaze near a cemetery at Quambatook, north-west Victoria, just after 6.30am on January 21 last year.

He has pleaded not guilty to her murder and on Thursday appeared in the Supreme Court of Victoria in Bendigo where the jury heard his defence for the first time. 

Barnes's barrister David Cronin SC told the jury his client's brother Graeme may have 'misheard' what the prosecution suggested was a confession in the hours after Ms Kelly was allegedly murdered. 

In opening the trial on Wednesday, Crown prosecutor Patrick Bourke SC told the jury Barnes showed up at his brother's house at 4.30am and allegedly confessed to the crime in front of him and his wife.

'I have premeditatedly murdered someone,' the brother later alleged Barnes told him.

'He says to these two witnesses, she deserved it. That he made a foolproof plan, and that she had to go,' Mr Bourke told the jury.

Brian Barnes's defence suggested injuries found on him after the alleged murder may have been caused by a skateboard crash 

The court heard Barnes claimed to have used zip ties on Ms Kelly and later complained that she had 'scratched him up' as she fought to save herself.

In a brief defence, Mr Cronin urged the jury to keep an open mind. 

'The defence position is that he denies that he said that, denies that he said those words to his brother,' he said. 

'So you'll need to consider whether or not he said those words to his brother ... or whether it was something less than that, whether, for example, it was something along the lines of "I dreamt that".

'The two may be similar, but have two very different meanings.'

Mr Cronin suggested brother Graeme Barnes may suffer from an undisclosed hearing impediment.

'While you're thinking about those issues that I’ve raised in relation to Mr Barnes, I suppose consider what his hearing is like, what the circumstances are like where he was told these things or allegedly told these things, and could there have been a misunderstanding or could he have misheard what Mr Barnes said in relation to those matters?' he said. 

Mr Cronin said the prosecution must prove Barnes was the one who inflicted the fatal injuries on Ms Kelly.

While there may be evidence he went to the house, jurors were asked whether 'it was reasonably possible that it was someone else'. 

Merril Kelly (centre) had been a beloved member of the local community 

The jury was told they would hear evidence Barnes was injured around the time of the alleged attack. 

On Wednesday, the Crown alleged Ms Kelly had fought for her life, scratching Barnes as he bashed her skull in. 

Mr Cronin asked whether the marks came from her, or from Barnes 'falling off his skateboard'. 

The defence also said prosecutors must prove Barnes's actions were conscious, voluntary and deliberate. 

Jurors were told to consider whether Barnes was in 'an altered state' on the day.

'What would be the purpose of bringing and using zip ties to restrain someone after an intentional fatal assault?' Mr Cronin asked. 

'If your intention was to go around and fatally assault someone, why would you bring zip ties or methods of restraining them afterwards? 

'Why restrain someone that you have just fatally injured?'

Her body was discovered when emergency services were called to a blaze near a cemetery at Quambatook, north-west Victoria, just after 6.30am on January 21 last year

Ms Kelly's burnt remains were found near the cemetery at Quambatook (pictured) 

Mr Cronin also asked why his client would park a distinctive ute with a toolbox and personalised plates right in the victim's driveway, when he could have parked down the road.

Mr Bourke told the jury DNA evidence would link Barnes to a zip tie found on Ms Kelly's wrist and a toenail found in the driveway, and that her DNA was allegedly found in blood in his ute, on his washing machine and on his glasses.

An autopsy found Ms Kelly's official cause of death was head injuries, with extensive injuries to the right side and back of the head.

Findings suggested that Ms Kelly was not breathing when set on fire.

A black cable tie was found around her neck.

Prosecutors claim Barnes had been motivated to kill Ms Kelly over a petty dispute involving pool repairs on the community pool.