The 39-year-old father has pleaded not guilty to two counts of sexually touching a child between the ages of 10 and 16.
The charges relate to one event in which he allegedly touched the then 15-year-old on the breasts and genitals while they were in her bedroom.
In a NSW District Court trial starting on Monday in Bega, in southeastern NSW, a jury was told the girl's teacher reported the alleged abuse to police.
Crown prosecutor Nerissa Keay said the girl told her teacher in September 2022 that her father touched her inappropriately on more than one occasion.
The incident to which the charges relate was allegedly the last time the father touched her.
"She said she was wearing a dress at the time that happened," Ms Keay told the jury.
"That he put his hand on her chest over the dress, and his hand under the dress and inside her underwear."
The prosecution case will include four witnesses, including the alleged victim, her mother, the teacher and the police officer in charge of the investigation.
Defence barrister Jonathan Cooper said the complainant's credibility would be a central issue in the trial.
"The allegations in this case come from one person," he said.
"Her credibility, her reliability, her accuracy, her memory is the issue in this trial.
"My client asks you to listen closely."
The jury also heard the father had co-operated with police and participated in interviews despite not being legally required to do so.
"It's the defence case that he was up-front and he was honest with police, saying what was going on at home and that he didn't do it," Mr Cooper said.
The trial continues.
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National Sexual Abuse and Redress Support Service 1800 211 028
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