Detectives from the Sex Crime Squad's Child Exploitation Internet Unit (CEIU) began talking online with the 47-year-old last month, posing as the mother and daughter.

Police will allege in court that the man believed he was speaking with a woman and her daughter, where he engaged in highly-sexualised conversations, sent child abuse material and made arrangements to meet them for sexual activity.

He was arrested at Tanilba Bay about 7:30am on Wednesday.

Investigators executed a Commonwealth search warrant at a Tanilba Bay home and seized several electronic storage devices and other items for further examination.

Strike Force Trawler is a continuing investigation by the CEIU into the sexual abuse and exploitation of children on the internet and telecommunications devices.

The man was taken to Raymond Terrace Police Station and charged with use carriage service to groom person intent to procure under 16 years for sexual activity with another over 18 years; use carriage service to transmit, publish or promote child abuse and possess child abuse material.

He was refused bail to appear at Raymond Terrace Local Court on Wednesday, where he was formally bail refused.

His matter will return to court on February 22.

The CEIU conducts regular covert online investigations and works closely with NSW police and law enforcement interstate and overseas.

Parents can access child safety information at esafety.gov.au or educational packages from ThinkUKnow online.

Police urge anyone with information that may assist Strike Force Trawler investigators to contact Crime Stoppers on 1800 333 000.

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