Joshua Macdonald, 40, was gunned down outside a home in Merrylands West in western Sydney on September 2.
He was treated by ambulance paramedics but died at the scene.
An 18-year-old man police allege was contracted to surveil the residence using a drone has been charged with murder and remains before the courts.
Following further inquiries, detectives executed a search warrant at a home unit in Wollongong, south of Sydney, on Friday afternoon and arrested a 28-year-old woman.
It's expected to be alleged she also participated in conducting surveillance for the gunman involved in the fatal shooting and helped with their escape.
She has been charged with being an accessory after the fact to murder, participating in a criminal group and failing to comply with an order to access digital evidence.
The woman was expected to appear before a Sydney court on Saturday.
Detectives believe Mr Macdonald was not the intended target of the hit, making it the second mistaken-identity shooting related to organised crime in Sydney in as many days.
The morning before Mr Macdonald's murder, attackers forced their way into a home at southwest Glen Alpine and fatally shot 23-year-old university student Marco Talia.
The shooting of Mr Macdonald was at least the fifth suspected NSW mistaken-identity killing since May 2025.
Concern has been expressed that reckless overseas criminal leaders are ordering the misguided attacks.
Senior government ministers insist the situation is under control.
Under-pressure Police Minister Yasmin Catley told reporters in the wake of Mr MacDonald's murder that police were on top of the situation.
"I do not accept this is out of control ... we will not surrender our streets to organised crime gangs," she said.
Detective Superintendent Joe Doueihi said last weekend the arrested 18-year-old was likely one of a number of people contracted by an organised crime group to carry out parts of the execution.
"If we have the evidence that implicates you and suggests that you're aware of what was happening, and even not, you will be charged with murder," he warned.Â
"Even if you just place the tracker on the car or you burnt a motor vehicle, you will be charged with murder."
Supt Doueihi said young people taking on jobs from criminal gangs were also putting themselves and their families at great risk of retribution from rival gangs when caught.
22°C