Prime Minister Tony Abbott, who was elected just more than two weeks ago, his wife Margie and their two daughters, Frances, 22 and 20-year-old Bridget, were photographed laughing and smiling with the Prince as he attended an official engagement at Admiral House in Kirribilli .
"They're both very excited to see you," said the Prime Minister as he introduced Harry to his statuesque daughters, who he has previously described as his "best asset."
Many remarks have been made by the Australian media that one European prince met his future wife in the Australian city when Prince Fredrick of Denmark was introduced to the future Princess Mary in a bar in Sydney.
Earlier in the day Harry joined the Prime Minister for the International Fleet Review, which was held to celebrate Australia's naval centenary.
Thousands gathered at the picturesque harbour-front to catch a glimpse of the Prince who spent time meeting many of the fans who had turned out to greet him.