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Jamie Murphy heads home from Bali after police release him without charge

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Australian teenager Jamie Murphy will fly home to Perth on Thursday night after he was released from Bali police custody.

The 18-year-old and his parents arrived at Denpasar International Airport at around 5pm local time (8pm AEDT).

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Jamie Murphy flies home to Perth

Australian teenager Jamie Murphy has boarded a flight to Perth after he was released from Bali police custody. The 18-year-old was held over suspected drug possession.

Mr Murphy's father Brendan Murphy kept an arm on his back as the pair walked into the airport, repeatedly saying "no comment" to waiting news cameras.

The teenager wore khaki shorts and a black t-shirt, a change from the blue checked shirt he had worn during his time in police custody.

As the family were processed through airport security, a number of fellow passengers appeared to recognise the teenager and take photos.

The family are expected to board a Garuda flight to Perth and arrive home at around 11pm (2am AEDT).

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Mr Murphy had travelled to Bali with a group of friends for a holiday, but the getaway turned sour when he was detained by police early on Tuesday morning.

Security guards at the Sky Garden nightclub in Kuta alleged they found a packet of white powder in the teenager's bag as he tried to enter the venue.

He was detained at Kuta Police Station as tests were carried out on the powder, as well as his blood and urine.

All tests returned negative for illicit drugs and the 18-year-old was released on Wednesday evening.

Kuta police chief Wayan Sumara said the substance, initially thought to be cocaine or heroin, was actually a mixture of painkillers, cough medicine and caffeine.

On Wednesday evening, Mr Sumara said the teenager was "very lucky".

"I think he is very lucky, because in my mind he is newcomer, he doesn't know Kuta well," Mr Sumara said. "The police always try to do the best for foreigners, especially Australian tourists."

Mr Sumara said the teenager had told police he was given the powder on the street.

However, Mr Murphy and his lawyers have denied that he ever saw the package before it appeared "like magic" in his bag at the nightclub.

Mr Sumara urged any tourists in Kuta: "don't try drugs".

"If someone offers you, if someone [tries to] sell you drugs, don't try to buy it," he said.

Mr Murphy had said little to a waiting crowd of media Wednesday night as he left Kuta Police Station, except to say "yep" when asked if he was happy to be released.

The teenager, from Ellenbrook in Perth's north-eastern suburbs, had only arrived at the popular tourist destination on Sunday.

His travel coincided with "schoolies" end-of-year celebrations, but he graduated from high school in 2015.

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