Perth, July 22: A 28-year-old international student based in Sydney is facing court after investigators allege he rorted the Tourist Refund Scheme (TRS) to the tune of more than $5 million, lodging bogus claims tied to a string of luxury and fake watches.
The man fronted Downing Centre Local Court today, 22 July 2026, following a joint operation by the Australian Federal Police and Australian Border Force.
The case stems from Taskforce Avarus, an AFP-led investigation launched in February 2026 after Border Force flagged what it believed was an organised network working the TRS system.
Authorities say the group used multiple high-value claimants alongside people making rapid back-to-back international trips, structured cash deposits, and the movement of expensive goods between the country and overseas.
Under the scheme, travellers leaving Australia can claim back the GST on eligible purchases over $300, on the condition the goods leave the country with them and aren’t brought back in.
Investigators allege the man submitted more than $5 million in fraudulent TRS claims for luxury watches through Sydney Airport alone.
His travel pattern also drew scrutiny: police say he flew to Chengdu Tianfu Airport in China more than 20 times, frequently spending less than a day overseas before returning.
Between February 2025 and May 2026, he allegedly funnelled more than $1.1 million in cash into Australian bank accounts, mostly through ATM deposits in Sydney’s CBD.
It’s further alleged he altered banking documents and repeatedly claimed refunds on goods that weren’t actually eligible under the scheme.
AFP and Border Force officers raided premises in the Sydney CBD on 20 May 2026, seizing roughly $270,000 in cash, a haul of electronic devices, a cash-counting machine, and a collection of watches including a Richard Mille piece valued at about $170,000, three Patek Philippe watches, a Van Cleef & Arpels watch, and two counterfeit luxury watches, along with numerous invoices and receipts.
The man has been charged with one count of dishonestly obtaining a gain, an offence under section 135.1 of the Criminal Code (Cth). He was remanded in custody on 21 May 2026 and, if convicted, faces a maximum penalty of 10 years’ imprisonment.
AFP Detective Superintendent Peter Fogarty said the scheme’s abuse comes at a direct cost to the public.
“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 the agency remains alert to fraud attempts at the border.
“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.
Media & PR: editor@dailystraits.com. Copyright 2021–Present DailyStraits.com. All rights reserved.