Khaled Merhi, 39, was released from custody after being charged by New South Wales police and the Australian Federal Police with one count of possessing a prohibited weapon.
He was released on bail to face court later this month.
Merhi was in custody for eight days, with authorities using special terrorism powers to hold him.
Two other men who were arrested in the raids have already faced court over the alleged plot to bring down a plane.
Merhi's brother, Abdul El Karim Merhi, was also arrested but police released him without charge on Wednesday.
The men were arrested last month in raids across Sydney, and homes in Surry Hills, Lakemba, Punchbowl, Wiley Park and Bankstown were searched.
Australian Federal Police last week said that a plot was "disrupted" on July 15, after an improvised explosive device was taken as far as the international terminal at Sydney Airport.
The police have called the plan "one of the most sophisticated terror plots attempted on Australian soil".
"At no stage did the IED breach security.
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