Police say the man, 27, used threats, coercion and deception to force his wife and two-month-old girl to leave against the woman's will in March.
He then allegedly tried to cancel his India-born wife's Australian visa.
The man faced a Sydney court on Tuesday on three charges, including human trafficking and forgery of documents.
"It is a disturbing case where we see a victim and their young child transported from Australia to a foreign jurisdiction without any means for them to return home," said Australian Federal Police Supt Dan Evans.
The man, an Australian citizen who cannot be named for legal reasons, failed in his bid to cancel the woman's visa and the child's Australian passport, according to police.
The woman contacted an anti-slavery organisation after returning home to Australia. The group notified authorities.
The man was granted bail and will face a court again later this month.
Australian police said human trafficking remained an under-reported crime in the nation. They investigated 150 alleged cases in the most recent financial year.
Photo copyright: GETTY IMAGES. Caption: The man is accused of trying to cancel his wife's visa and daughter's passport