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Emergency services were called to Irrara Street in Croydon just after 4am on Wednesday, to find a house well alight.
Fire and Rescue crews extinguished the blaze and found the body of 80-year-old Ted Grantham, a local pastor, inside the ruined home.
Later yesterday morning, police appealed for public help to find his son, 50-year-old Christopher Grantham, who also lived at the house.
Police were later told a man had allegedly threatened staff with a machete before taking cigarettes at a service station on Parramatta Road, Haberfield, at about 4.20am yesterday.
Grantham was arrested at Woy Woy on the Central Coast, north of Sydney, at about 7.40pm overnight.
Police allege they found a machete concealed in the man’s pants.
The 50-year-old was charged with offences including murder, domestic violence-related destruction of property with the intent to endanger life, and armed robbery.
He was refused bail and will appear in court today.