According to police, Jaspreet Singh confessed to burning his car to claim insurance after alleging that he was racially attacked.
Singh had complained he was attacked by four men, who also set his car on fire while he was parking it.
Singh gained 11,000 Australian dollars in insurance money after the incident.
Detective Senior Constable Danielle O'Keefe said, "Police had obtained security footage depicting Singh buying a 15-litre opaque plastic container and 15.96 litres of petrol on the day before the attack. "
According to a news agency report, 29-year-old Singh is now being charged with making a false report for financial gains.