Matthew Mark Luke John Osborne, who appeared before a court in Cairns yesterday has been charged for snatching the Argyle stone from a jewelry store.
Police had identified the Briton from the CCTV footage installed inside the shop, before Osborne escaped the spot on a bicycle from the northern Australian city of Cairns last weekend.
Police nabbed the British national at the Melbourne airport while trying to board flight to New Zealand on Thursday.
After stealing the precious stone, he allegedly swallowed it.
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A spokesman for the British Foreign Office said, "We are aware of reports that a British national was arrested at Melbourne airport on Thursday.
"We have been in contact with the local authorities and offered to provide consular assistance."
Despite its expensive tag, the diamond is only 0.31 carat with a diameter of 4.3 millimetres (11/64 of an inch). The value of pink diamonds from Australia's Argyle Diamond Mine is based more on colour than size.