Three student whistleblowers who reported a teacher for touching younger girls in a sexual way at their religious school were reprimanded by a senior church member for the "dangers and implications" of their stories, a royal commission has heard.
The Royal Commission on Institutional Responses to Child Sexual Abuse was told three girls aged 11 and 12 who complained about Northside Christian College teacher Kenneth Sandilands were rebuked for speaking out in 1987.
The commission also heard that church management did not tell the police once they became aware of seriousness of the allegations because the head pastor believed it was the parents' responsibility to contact the authorities.
The then head of Northside Christian College, Denis Smith, told the commission he did not advise parents of victims to contact police but said they could speak to Sandilands.
Sandilands, 69, was jailed in 2000 for sexual offences committed at Northside Christian College in Melbourne in the 1980s and was last month sentenced to a further 26 months in prison for sexual offences committed at another school in the 1970s.
The commission heard that Mr Smith asked assistant pastor Keith Ingram to investigate the students' 1987 claims of inappropriate touching, despite him having no educational qualifications.
The commission heard that Mr Ingram found the "incident spoken of was largely embellished by the girls" and they were to be given a "firm lecture as to the dangers and implications of their stories".
Former student Emma Fretton, who was abused by Sandilands for a number of years from 1986 when she was six, has previously told the commission that school was the "scariest" place for her as a child.
In a report read out to the commission, another student recalled Sandilands showing pornographic pictures to young children in the guise of sex education.
When her mother asked he about the images, the girl said: "You know, mummy, rude pictures ... pictures of men and women without clothes on."
Despite numerous allegations of sexual abuse against Sandilands during his time at the school, he was permitted to resign in 1992 on the grounds of his poor eyesight. The commission has previously heard that Mr Smith discussed the "potential financial benefits" that might be available if Sandilands left teaching.
Mr Smith told the commission he failed to contact the police despite becoming aware of the seriousness of the allegations against Sandilands in 1993 because he thought that was the parents' role.
In a report to the church board compiled in January 1993 and December 1994, Mr Smith said he had done as much as he could to resolve the issue.
The Northside Christian Centre, now known as Encompass Church, is affiliated with Australia's Pentecostal movement.
Pastor John Spinella, who took over from Mr Smith as head of the church, wrote in a report that Mr Smith "completely bungled" the case. He told the commission he could not understand why Mr Smith did not report the claims to the police or education department.
The public hearing is examining the response of Australian Christian Churches and affiliated Pentecostal churches to allegations of child sexual abuse.
The hearing before Justice Jennifer Coate continues.