A 28-year-old international student based in Sydney has been charged with claiming more than $5 million in fraudulent GST refunds on luxury watches.
Police allege the man made more than 20 trips to Chengdu, China, between November 2025 and February 2026, often staying for less than 24 hours before returning to Australia. He is accused of claiming GST refunds through the Tourist Refund Scheme (TRS) at Sydney Airport, editing bank documents and repeatedly seeking refunds for items that were not eligible.
Investigation by Taskforce Avarus
The AFP-led Taskforce Avarus investigation began in February after the Australian Border Force (ABF) identified suspicious travel patterns and alleged fraudulent TRS claims. Under the TRS, eligible international travellers can claim back the GST paid on goods worth more than $300, provided the items are taken overseas and not brought back into Australia.
During search warrants executed in Sydney's CBD on May 20, police seized about $270,000 in cash, electronic devices, a cash-counting machine, five luxury watches and two counterfeit watches. The luxury watches included a Richard Mille timepiece worth about $170,000, three Patek Philippe watches and a Van Cleef watch. Police also seized numerous receipts and invoices.
Cash deposits and charges
Investigators also allege the man deposited more than $1.1 million in cash into Australian bank accounts between November 2024 and May 2026, mostly at ATMs in Sydney's CBD. He was arrested on May 21 and charged with one count of dishonestly intending to obtain a gain. The man was scheduled to face Downing Centre Local Court on Wednesday. If convicted, he could face 10 years in jail.
Police warnings
AFP Detective Superintendent Peter Fogarty warned that anyone who abuses the taxation system can be traced. "Everyday Australians suffer when the taxation system is exploited and money goes into the pockets of criminals, which bankrolls future criminal ventures," he said. ABF Superintendent Paul Barfoot said border-related fraud would not be tolerated. "Our officers are highly skilled at detecting suspicious activity and travel patterns that can indicate potential fraud and trade-based money laundering," he said.
