A Gold Coast man accused of indecently assaulting two young children in front of his own two children has been granted bail.

The man, 60, allegedly assaulted the children when all four were in the care of his adult daughter in April, although she did not witness the incident.

The lawyer for the defendant, who can't be named, told Southport Magistrates Court that the nature of the allegations was questionable as the mother of the children involved is a "disgruntled employee" of the accused.

He also asked for bail to be granted because his client was a primary carer for his two children.

The prosecution argued against bail because the man's children were in his sole care. They could also be called as witnesses.

However, the magistrate said she was not convinced the defendant posed a high risk of contacting witnesses, reoffending or fleeing.

The man was granted bail on condition that he not have any unsupervised contact with a child under the age of 16, including his own children.

He is also not to contact either of the children who made the complaint or their mother, unless the contact relates to employment matters and occurs through a third party.

The man is due to reappear on October 10.