Ronald Mulkearns used the £1.2 million ($2.1m Australian) estate, however, now the money from the sale will now be used to help victims of abuse, according to the diocese.

The bishop died in April and Paul Bird took over.

He told the Herald Sun: "Whatever the diocese of Ballarat receives from Bishop Mulkearns' estate, I intend to set aside for assistance to victims of abuse.

"This will continue the support that the diocese has given to abuse victims over many years."

The office has not confirmed the exact value of the estate or how exactly the funds will be used to benefit abuse survivors.

Ronald Mulkearns is accused of knowing about paedophile priest Gerald Francis Ridsdale as well as others sexually abusing children in the diocese from parish to parish.

The Royal Commission into Institutional Responses to Child Sexual Abuse in Australia, which is investigating a number of historic cases, also heard the bishop destroyed documents on Gerald Francis.

The late bishop told the commission he was sorry and did not deal with paedophile priests properly.