Jai Taurima, known by Australian fans as "Jumping Jai" said goodbye to her daughter Indie Rose who died of leukaemia on Saturday.
Taurima had been 'infamous' for his smoking, drinking and superman tattoo, Herald Sun reports.
After his retirement Mr Taurima worked with the Australian Federal Police and as security officer for prime ministers John Howard, Kevin Rudd and Julia Gillard.
However, it was of being a father that he was the most successful.
The family announced the death through a Facebook account set up for two-year-old Indie Rose.
"This morning at 12.30am Indie Rose Taurima grew her angel wings and went to heaven. She was lying in Mummy's arms pain free and slipped away in her sleep. Love you baby girl," Taurima posted.
On Tuesday, Indie's mother, Jennifer Smith, informed therir Facebook followers that Indie was already showing signs that she was ready to go.
"We have been so blessed to have another week with our beautiful girl. She has become so fragile and sleeps for majority of the day. Her little body is tiny and is getting weaker each day. Our occupational therapist gave Indie a special chair to help support her body as she now prefers to sit up because her liver and spleen are very enlarged it's extremely uncomfortable to lay down, " Smith posted.
In March, the family celebrated Indie's third birthday in advance.
"We have decided to celebrate indie's 3rd birthday tomorrow as her real birthday is in May. We are having a crazy hat theme. I think the doctors and nurses are just as excited as we are."
Indie was diagnosed with Acute Lymphoblastic Leukaemia in August 2011. After the diagnosis, Indie spent three years undergoing treatment at the Sydney Children's Hospital at Westmead.
On Sunday, Wiggles posted a message of condolence for the family.
"It is with great sadness that we report the death of a beautiful little girl, Indie Rose. We had the wonderful opportunity to meet Indie last year, and we will miss her dearly. Our thoughts and prayers are with this little angel, along with her mum, dad and family."