Justice Peter McLellan said it was shocking the church argued sexual abuse was a "moral failure" rather than a criminal act.

Mr Levey, who was subjected to daily abuse by Gerald Ridsdale at the Mortlake presbytery when he was a teenager, said the church acted like it was above the law.

He said the church was out of touch with the community.

Justice McLellan said he could not comprehend how any person could consider the rape of a child to be a moral failure and not a crime.

"This statement by leaders of the Catholic Church marks out the corruption within the church both within Australia, and it seems from reports, in many other parts of the world."

Justice McClellan also said he was disheartened by delays in institutions signing up to the national redress scheme for survivors of child abuse. "I hope this is not because of a desire to put the protection of the institution's assets ahead of the needs of survivors," he said.

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