Police say they found a replica gun and $4000 cash when the stopped a teenager who had reportedly been riding a motorbike on a Kingston footpath.
They said they arrested the 16-year-old boy at 3.35pm on New Year's Eve. Police were called after reports a young person was riding on a footpath near Wentworth Avenue in Kingston.
Police said the teenager was riding a blue and white motorbike. They said he had a replica handgun and the cash.
"He was arrested and a subsequent search of the boy's residence located a ballistic vest and items believed to be illicit drugs," ACT Policing said.
"He was charged with possession of property suspected to be the proceeds of crime, unauthorised possession of a prohibited firearm, weapon possession, and breach of bail. Inquiries are continuing and further charges may be laid."
The teenager was expected to appear before the ACT Children's Court on Monday.
The police said: "Anyone with information about the sale and distribution of illicit drugs in the ACT is urged to contact Crime Stoppers on 1800 333 000, or on the Crime Stoppers ACT website. Information can be provided anonymously."