The Family Law Act 1975 doesn't really identify one family entity as 'more important' or as 'having more rights' than another, so on the books, it would be legally inaccurate to state 'The Court favours the biological parents over the grandparents', but section 60B indicates that children have rights, and most of those rights pertain primarily to parents, rather than grandparents. Further to that, the Court must make orders it determines to be in the child's best interests, considered in line with section 60CC, which holds it's ordinarily in a child's best interests to enjoy a meaningful relationship with both parents.
Thus, on the books, it doesn't specifically state that a parental carer is preferred over any other type of carer, but in practice, it's generally accepted that where a parent poses no risk to a child and a meaningful relationships exists, or is capable of being developed, then it will usually uphold that it's in a child's best interests to reside with a parent over a grandparent.
Do you have care of your daughter already?