Police have revealed the parents of a woman murdered on property north of Mittagong were un-aware their daughters body had been buried in their backyard.

The mother and father of 33 year old Colleen Ayres returned from holidays last week to find their home at Lakesland, near Thirlmere , had been broken into, and their daughter missing.

Detectives later charged a woman with break and enter and after being given a tip off, found the body of Ms Ayres buried in a shallow grave.

32 year old Michael Duffy appeared in Parramatta Bail Court on Saturday charged with Ms Ayres murder.

Another man has been charged with break and enter, while a third man, and a 16 year old girl, have been released without charge , pending further inquiries.

The bail court has ordered Duffy continue to be held in custody.