The 42-year-old, reported to be a Chinese-Cambodian, was arrested in Sydney overnight following a tip-off from a welfare agency working with the alleged victims, the Australian Federal Police (AFP) said.
"The AFP will allege the women were told they were travelling to Australia on student visas, but upon arrival had their passports confiscated and were taken to the brothel, where they were held against their will," police said.
The man was charged with eight offences related to human trafficking and sex slavery, the most serious carrying a maximum 20-year jail term.
Trafficking of girls from Asia, particularly Thailand, is a problem in Australia and police said it was "abhorrent" for the victims.
"Human trafficking in all its forms is a heinous crime that impacts not only the victims, but their families and communities," said Glyn Lewis, head of Australia's trafficking squad.