Several media outlets have linked Ms Passmore to Daniel James Holdom, 41, who was this week charged with murdering Ms Pearce-Stevenson, 20, in December 2008 and leaving her remains in Belanglo State Forest, south of Sydney, where they were discovered in 2010.
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Passmore, who arrived accompanied by her partner and a young child, spoke with officers.
Earlier this week police revealed Ms Pearce-Stevenson’s identity, bank account and mobile phone were used for years after her death to mislead family and defraud social services.
SA police also alleged a woman in a wheelchair had impersonated Pearce-Stevenson at an interview with Centrelink in Adelaide in 2010.
A 26-year-old woman, believed to be Ms Passmore, was injured and was flown to Alice Springs Hospital by the Royal Flying Doctor service.
She will also be questioned about what happened to the slain mother and daughter.
On Tuesday, Police said they believed Pearce-Stevenson’s bank account was accessed hundreds of times after she was last seen alive in late 2008.
The 41-year-old suspect was arrested at the Cessnock Police Station, 150 kilometers (95 miles) north of Sydney, and would appear in nearby Maitland Local Court on Thursday charged with the mother’s murder, a police statement said on Thursday.
New photos of Khandalyce Pearce, whose remains were dumped in a suitcase on the side of a South Australian highway, have been found on the Facebook page of Adelaide woman Hazel Passmore.
In December 2010, a woman pretended to be Pearce-Stevenson at a welfare office, though it is not yet clear if it was the same individual.
Police suspect Ms Pearce-Stevenson’s killer left her body in the forest to make it look like she was a victim of Milat’s. The forest was the infamous dumping ground for victims of Australia’s most notorious serial killer, Ivan Milat, who was convicted in 1996 of murdering seven backpackers.
“It is clear that a few of the people involved in the frauds knew without doubt that Karlie and [her daughter] Khandalyce were dead and continued with their role”.
Two wanted fugitives that led police on a chase through multiple states have been charged with a string of offences, including murder.
Karlie’s bank account was kept open for years after her death and nearly $100,000 was spent or withdrawn from it between November 2008 and March 2012.
‘Given the nature of the charge I think it’s appropriate that he appear by AVL, ‘ Magistrate Chicken said.
New South Wales Police Detective Superintendent Mick Willing said police allege Pearce-Stevenson was murdered on December 14 or 15, 2008.
Police also added Ms Pearce-Stevenson received “certain injuries” to her body, but would not go into further detail.
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“We believe that Khandalyce was murdered at a few point after Karlie but we are trying to establish the exact time”.
