A Sydney-based international student has been charged after allegedly making more than $5 million in fraudulent Tourist Refund Scheme claims related to high-end watches.
The scheme allows eligible international travellers to claim a GST refund on purchases over $300 if the goods are taken overseas and not brought back.
The charges stem from an AFP-led investigation, launched after the Australian Border Force uncovered a suspected Tourist Refund Scheme fraud network involving frequent overseas travel, structured cash deposits and high-value goods.
Police allege the 28-year-old travelled to Chengdu Tianfu Airport in China more than 20 times between February 2025 and May 2026, with many trips lasting less than 24 hours.
During the same period, police allege he deposited more than $1.1 million in cash into Australian bank accounts, mostly through ATMs in Sydney’s CBD.
Police also allege he altered bank documents and repeatedly sought GST refunds for ineligible goods.
Search warrants executed in Sydney’s CBD on May 20 uncovered $270,000 in cash, a cash-counting machine and electronic devices.
Police also seized a Richard Mille watch valued at about $170,000, three Patek Philippe watches – including a Geneva model estimated to be worth more than $200,000 – a Van Cleef watch, two counterfeit luxury watches, and numerous receipts and invoices.
The man has been charged with one count of dishonestly obtaining a financial gain.
If convicted, he faces a maximum penalty of 10 years’ imprisonment.
The 28-year-old is due to appear before Downing Centre Local Court on Tuesday.
AFP Detective Superintendent Peter Fogarty said fraudulent GST refund claims came at the expense of Australian taxpayers.
“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.”
Australian Border Force Superintendent Paul Barfoot said officers remained vigilant against attempts to misuse 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.