The alarming video footage, obtained by Channel 9, shows a toddler with a plastic bag shockingly placed over their head.
An unidentified male in the video can be heard saying: 'We’re not child abusing them, we’re just teaching them discipline'.
A separate video captured the voices of people claiming to be the toddler's parents saying: 'That’s our child, and you’re not going to teach us how to treat our child.'
Police spokesperson Lee Thomson confirmed the child was safe: 'The toddler has been located safe and well'
She further added: 'Police are currently speaking to a teenage girl in relation to the incident.'
This is a developing story.