Police discovered the body of a 36-year-old man following a fire at a Giltinan Place home in Holt about 2.40am on May 22.
The fire was deemed suspicious and police quickly launched an investigation into the incident.
The pair knew each other, with police believing a dispute occurred before the fire was allegedly set.
Police allege the 38-year-old man purchased accelerant which was used to assist in setting the house on fire.
"Police allege the man should have known that the deceased would have been in the residence at the time of the arson, and therefore the charge of murder is appropriate," police said.
Police arrested the man about 7.30am after executing a warrant at a Northbourne Avenue home.
He was interviewed by police and has since been charged with murder and arson.
