A Sydney-based international student has been charged for allegedly exploiting the Tourist Refund Scheme at Australian airports by lodging more than $5 million in dishonest claims on luxury and counterfeit watches.
The man, 28, is scheduled to appear before Downing Centre Local Court today (22 July, 2026).
An AFP-led Taskforce Avarus investigation began in February, 2026, following a report from Australian Border Force (ABF) about a coordinated network suspected of using multiple high-value Tourist Refund Scheme (TRS) claimants and several individuals engaged in rapid international travel, structured cash deposits and the circulation of high-value goods.
In Australia, international travellers can claim a GST refund for purchased goods worth more than $300, provided the goods are not brought back into Australia.
The man allegedly lodged more than $5 million in fraudulent TRS claims for luxury watches at Sydney Airport.
Police inquiries also identified the man had travelled more than 20 times to Chengdu Tianfu Airport, China, often remaining overseas for less than 24 hours.
Between February, 2025, and May, 2026, the man allegedly deposited more than $1.1 million in cash into Australian bank accounts, with most deposits occurring at ATMs in Sydney's CBD.
It will be alleged the man edited bank documents and made repeated claims for items not eligible for the TRS.
AFP and ABF investigators executed warrants in Sydney's CBD on 20 May, 2026, and seized about $270,000 in cash, electronic devices, a cash counting machine, a Richard Mille watch worth about $170,000, three Patek Phillipe watches, one Van Cleef watch, two counterfeit luxury watches, and numerous receipts and invoices.
The man was charged with one count of dishonestly intending to obtain a gain, contrary to section 135.1 of the Criminal Code (Cth). He was remanded into custody on 21 May, 2026.
He faces a maximum penalty of 10 years' imprisonment if convicted.
AFP Detective Superintendent Peter Fogarty said every dollar dishonestly obtained through GST refunds was at the expense of the Australian community.
"Every day Australians suffer when the taxation system is exploited and money goes into the pockets of criminals, which bankrolls future criminal ventures," Det-Supt Fogarty said.
"Anyone who abuses the taxation system is warned - your actions and transactions are always traceable, and you are in the AFP's sights."
ABF Superintendent Paul Barfoot said ABF officers had zero tolerance for border-related fraud, including those attempting to abuse the Tourist Refund Scheme.
"Our officers are highly skilled at detecting suspicious activity and travel patterns that can indicate potential fraud and trade-based money laundering," Supt Barfoot said.
