Local reports suggest the unnamed man first began abusing the girl in the 1970s, when she was just 11 years old, and threatened her with violence if she ever revealed the abuse.
Of the four children, one died and all suffered birth defects, the Herald Sun newspaper alleges.
The case has been likened to the notorious crimes of Austrian Josef Fritzl, who imprisoned his daughter for over 20 years and fathered seven children with her.
The unnamed Australian man is said to have been initially arrested back in February.
The alleged victim is reported to have first contacted authorities three years ago but pleaded for no action to be taken for fears over her safety.
However, she returned to the police again in June last year and gave a statement against her father.
The Herald Sun claims DNA tests were taken and proved the man was the father of the children, after he had denied assaulting his daughter.
He is now facing 13 charges, including incest, rape and indecently assaulting a girl under the age 16, and is due to appear in court in November.
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