The arrest was made after a successful TV appeal in which police released footage of a hoodied attacker setting the synagogue alight.
"Every act of antisemitism is an affront to who we are as Australians," Albanese said on X.
"This is an escalation in anti-Semitic crime in New South Wales. Police and the government remain very concerned that an accelerant may have been used," said New South Wales Premier Chris Minns.
The suspect allegedly carried out several tasks with full awareness of their potential to harm Israel’s security.
Prosecutors have indicted Guatemalan citizen Sebastian Zapeta-Calil, 33, for the alleged murder of an unknown woman on December 22, according to NBC News.
The Canadian government announced a national antisemitism forum after the shooting of the Toronto Bais Chaya Mushka Elementary School and arson of the Montreal Beth Tikvah Synagogue.
CBC cited the police as saying that one incendiary device was found at the scene. Witnesses told police that they saw a suspect fleeing the scene.
"You are late," a person could be heard saying while an additional individual shouted "Does the Prime Minister condemn calls for an intifada against Jews?"
Netanyahu called on Australian authorities to prevent antisemitic attacks against local Jewish communities in the future.
"I have zero tolerance for antisemitism. It has absolutely no place in Australia," Australia's Prime Minister Anthony Albanese said.