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.
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.
Australia charges five men over sailing plot to join Islamic State
"It will be alleged in court the man was one of a number of people -- who have been previously charged regarding this matter -- involved in formulating documents connected with preparations to facilitate, assist or engage a person to undertake a terrorist act," the Australian Federal Police said.
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.
Teen charged in Australia with terrorism offences
In April a 16-year-old boy was charged with preparing an attack linked to Anzac Day services honouring Australian soldiers in Sydney, while other arrests include a 17-year-old youth caught in a raid in Melbourne a year ago, allegedly with "improvised explosive devices".
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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