The Australian Federal Police has charged a Chinese national with reckless foreign interference, which carries a maximum penalty of 15 years imprisonment.
The woman was charged on Saturday after search warrants were lodged at residences in Canberra.
The AFP has alleged the woman, who is also an Australian permanent resident, was tasked by China's public security bureau to covertly gather information about the Canberra branch of a Buddhist association named Guan Yin Citta.
A suppression order has been put in place to shield the woman's identity.
"This is the first time the AFP has charged a person with foreign interference that allegedly involves targeting members of the Australian community," Stephen Nutt, an assistant commissioner with the Australian Federal Police said on Monday.
"It's unclear how that information could be used."
Nutt said the agency plans to make more arrests in relation to the woman's activities.
'A serious crime'
He said that despite this arrest, diasporas could still be targeted by foreign interference.
"Foreign interference is a serious crime that undermines democracy and social cohesion. It is a crime carried out by or on behalf of a foreign principal that involves covert and deceptive conduct or threats of serious harm or menacing demands," he said.
"Australia is not immune to foreign interference.
"The AFP and our partners are working with diaspora communities to help protect them from this criminality."
Authorities are encouraging the public to contact authorities and report suspicious activity to the national security hotline.
The AFP website has a fact sheet in over 40 languages to help people understand what foreign interference looks like.
When asked if the Chinese national had received support from the Chinese embassy, Nutt said any such interactions are not part of the AFP's investigation.
