Mario 'George' Fayjloun used his church position to abuse the trust of the family and then sexually touched the three victims on six occasions during confession and at dinner.
On two instances, the 36-year-old touched the mother on her groin and breasts and forced her to touch his penis.
He also touched the eldest daughter on her inner thigh twice and kissed her on the lips, and separately placed his hand down the shirt of the younger daughter, touching her on the breast and back.
His crimes occurred at the Greek Orthodox Church in Central Mangrove, north of Sydney, and at the family's home in the city's south-west between August 2019 and February 2020.
On Thursday, the Mays Hill man appeared in Liverpool Local Court, where Magistrate Gareth Christofi delivered sentence after finding him guilty of nine counts of aggravated sexual touching.
He noted the now-retired priest had 'cynically abused' the trust placed in him by his victims.
'The victims of these offences experienced significant emotional distress having been sexually touched in their own home by a man they say they trusted and revered,' the magistrate said.
While the touching was brief, without violence or threats, the crimes were aggravated because victims were abused multiple times within their own home, Mr Christofi said.
'The victims were inherently vulnerable on account of their relationship with the offender,' he said.
'The offender took advantage of that vulnerability for his own sexual gratification.'
Fayjloun continued to deny the offences, claiming the victims had made up the allegations for financial gain, Mr Christofi said.
'Repentance for Father Fayjloun is something for others to do, it would seem,' he said.
While the priest lost his income after being forced to resign from his role at the church after being arrested, he continued to provide services from his house, the magistrate noted.
Fayjloun was sentenced to a two-year intensive corrections order, meaning he will serve his jail time in the community.
He has been ordered to complete 300 hours of community service work and is barred from providing religious or spiritual services during that time.
Fayjloun was surrounded by supporters as Mr Christofi delivered his decision, some of whom were in tears as the hearing adjourned.
The priest did not say anything to reporters as he left the court.