He was reportedly arrested without incident and the AFP said there is “no impending threat to the community”.
Social media posts from allegedly inside the plane showed the man clutching a bag to his chest, yelling at cabin crew and terrified passengers.
“My name is Mohammed, slave of Allah,” the man can be heard saying.
“Are you a slave of Allah? Are you? Say it! Say it! Are you a slave of Allah?”
The charge of making a false statement about a threat to damage an aircraft carries a maximum penalty of 10 years in prison and the other charge can result in a fine of over A$15,000 ($16,000), the AFP said.
Passenger Sammi Marks described the man as a “big bloody unit” and praise the cabin crew for their response, saying passengers were left “scared and confused” as the plane returned to Sydney and waited on the tarmac.
“Absolute kudos to the cabin crew. I know they train for this stuff but keeping this guy contained was not easy,” Marks wrote on X, formerly known as Twitter.