A Sydney-based international student has been charged over an alleged multi-million-dollar fraud targeting Australia’s Tourist Refund Scheme (TRS), with police alleging he lodged more than $5 million worth of dishonest claims involving luxury and counterfeit watches.
The 25-year-old man appeared before Downing Centre Local Court on Wednesday, 22 July 2026, after being charged following an AFP-led investigation into suspected abuse of the GST refund system at Australian airports.
AFP Detective Superintendent Peter Fogarty said fraudulent use of GST refunds affected the wider Australian community.
“Every dollar dishonestly obtained through GST refunds is at the expense of the Australian community,” he said.
“Anyone who abuses the taxation system is warned – your actions and transactions are always traceable, and you are in the AFP’s sights.”
The investigation, known as Taskforce Avarus, began in February 2026 after the Australian Border Force (ABF) raised concerns about a coordinated network allegedly involving multiple high-value TRS claimants, frequent international travel, large cash deposits and the movement of valuable goods.
Under Australia’s Tourist Refund Scheme, eligible international travellers can claim a GST refund on goods purchased in Australia worth more than $300, provided the items are not brought back into the country.
Investigators allege the Sydney man lodged more than $5 million in fraudulent TRS claims at Sydney Airport for luxury watches, including claims involving items that were allegedly not eligible for refunds.
Police allege the man travelled more than 20 times between November 2025 and February 2026 to Chengdu Tianfu Airport in China, with many trips involving stays of less than 24 hours.
Investigators also allege he deposited more than $1.1 million in cash into Australian bank accounts between November 2024 and May 2026, with many deposits made through ATMs in Sydney’s central business district.
The AFP alleges the man edited bank documents and submitted repeated claims for goods that did not qualify under the TRS.
AFP and ABF investigators executed search warrants in Sydney’s CBD on 20 May 2026, seizing about $270,000 in cash, electronic devices, a cash-counting machine and several luxury watches.
Among the items seized were a Richard Mille watch valued at about $170,000, three Patek Philippe watches, a Van Cleef watch, two counterfeit luxury watches, as well as receipts and invoices allegedly linked to the investigation.
The man has been charged with one count of dishonestly obtaining a gain under section 135.1 of the Criminal Code (Cth). He was remanded in custody on 21 May 2026 and faces a maximum penalty of 10 years’ imprisonment if convicted.
ABF Superintendent Paul Barfoot said authorities had zero tolerance for border-related fraud. “Our officers are highly skilled at detecting suspicious activity and travel patterns that can indicate potential fraud and trade-based money laundering,” he said.
Authorities said the investigation remains ongoing and the allegations against the accused have not been proven in court.
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