Officers swooped on six Melbourne suburbs in a simultaneous raid, the Australian Federal Police and Victoria state police said in a joint statement. The name of the 23-year-old suspect was not released.
Among the police targets was an Islamic bookstore called the Al Furqan Islamic Information Centre. The centre's representatives did not respond to calls and emails, though a spokesman confirmed that police spent about 12 hours inside.
The arrested man is expected to be charged with collecting or making documents likely to facilitate terrorist acts. If convicted he could face a maximum 15 years in prison.