The 24-year-old, named in local media as Farhad Said, was charged with "conspiracy to conduct an act in preparation for a terrorist act" after being seized by counter-terrorism police outside his home in the suburb of Bankstown on Tuesday.
Several other men are already facing charges over the same alleged plot, which was uncovered in late 2014, with reports last year saying the Garden Island naval base close to the Sydney Opera House and other government buildings were among locations mentioned.
The latest arrest is part of Appleby, a rolling operation investigating people suspected of being involved in domestic acts of terrorism, Australians fighting in Syria and Iraq and the funding of terrorist organisations.
Police said 15 people have now been charged under Appleby since September 2014.
Last week, an 18-year-old man was arrested over an alleged "imminent" terror plot, with police claiming he was scouting possible sites in Sydney while at the same time trying to acquire a firearm.
At least six attacks have been foiled on home soil over the past 18 months, authorities have said, but several have taken place, including the terror-linked murder of a Sydney police employee in October.
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