Federal Labor MP Luke Gosling has been charged with two counts of assault on Northern Territory Administrator David Connolly at a community festival in Darwin this month.

Northern Territory police said the federal member for Solomon, 54, was arrested on Wednesday morning over an incident allegedly involving the administrator at a public event on July 18.

In a statement on Thursday, police said Gosling was bailed to appear before Darwin Local Court on September 1.

Police said the investigation began last week and Gosling was arrest on Thursday morning and taken into custody at Palmerston police station.

The alleged incident was previously reported to have occurred during the NT Thailand Grand Festival in Darwin, where both men took part in official proceedings. Gosling posted photos from the event on his social media that day.

In a statement released before he was charged, Gosling said: “The Northern Territory Police have released a statement on this matter. I am co-operating fully with their inquiries.”

Gosling, who has held the Darwin-based seat since 2016, has previously rejected the allegations, describing them as “ridiculous” and saying he had “no dealings” with Connolly beyond congratulating him on his appointment as administrator last year.

After the allegations emerged, a spokesman for Connolly said that “an incident occurred during His Honour the Administrator’s official attendance at a community event”, but declined further comment while police investigated.

The administrator is the King’s representative in the Northern Territory, performing a role equivalent to a state governor.

The NT News reported that Gosling was represented by barrister Marty Aust, who was seen arriving at Palmerston Watchhouse about 10.15am on Thursday.

Aust raised concerns about the handling of the matter, warning there was a risk of “politicisation” surrounding the case.

“What I can say is that the charge is completely and utterly denied and will be contested,” Aust told reporters outside the station, according to the NT News.

Gosling reportedly ignored waiting reporters after his release, got into the passenger seat of a Toyota Prado waiting outside the station, and the car then drove away and entered a nearby McDonald’s drive-thru.

Under the Northern Territory Criminal Code, assaulting the administrator while carrying out official duties carries a maximum penalty of 14 years’ imprisonment. Under section 44 of the Constitution, a federal MP may be disqualified if convicted and under sentence, or subject to be sentenced, for an offence punishable by at least one year’s imprisonment.

Connolly’s appointment last year was marked by the emergence of controversial comments he’d previously posted on social media about women’s sport, the prime minister and race. This prompted condemnation from Territory Labor figures, including Gosling, who described the comments at the time as “reprehensible and offensive”.

Gosling was appointed as Prime Minister Anthony Albanese’s special envoy for defence, veterans’ affairs and northern Australia following last year’s election. He served for 13 years in the Australian Defence Force’s parachute infantry, commandos and defence cooperation programs.

A spokesman for Albanese declined to comment, citing an ongoing legal process.

Shadow defence spokesman James Paterson said the allegations were “incredibly serious”.

“While everyone is entitled to the presumption of innocence, an arrest for assault requires him to immediately stand down from his duties,” he posted on X. “The PM must act today.”