EXACTLY. Anything is possible... I know from my own stitch that D can bring the worst in people!
Don't tell the L who's getting you the citizenship... in fact, I would tell them some story about H going back to Europe if one day you have to tell... like H got a job there and you will follow when bub's old enough blah blah whatever BUT the truth about your separation. (if the residency is based on marriage) Perhaps you can ask another L in Aus re: custody between two countries? Just be careful who you disclose your EU residency info to.
This Hague thing is to do with custody, and as I haven't gone through it myself I don't know in great details. But I know many who have the problem... it's really good that you're already in Aus, I know lots of mums who can't go back to their countries as they will become 'kidnappers'. If you browse on the net I'm sure there is forums/ info on this.
Keep being friendly to H and the first chance you have, get him to write a statement that he approves your daughter to be brought up in Aus and sign...(write full names) a friend of mine showed this letter at UK passport control and they let her& her boy in. Meanwhile ask an international family L what's the best thing to do... or look on the net first!