"Like any year, this one has had its challenges for our world, our country and each of us individually," Archbishop Fisher said.
"For people of faith you might say it has been an 'annus horribilis', as our Christian conceptions of life and love have been challenged in the marriage and euthanasia debates, freedom of religion in Australia put in doubt and shameful crimes and cover ups in our church uncovered by the royal commission.
"But the Christmas story insists there is a star in the dark sky, light amidst the fears and failures."
He said the number of young people "standing up for faith and ideals" provided hope for the church and the nation.
"Our young people are not naive about the shames in our past or the trials in our future, but they want to be part of the answer to both," he said.
Archbishop Fisher was among senior members of the clergy to reject key recommendations including requiring priests to break the seal of confession to report suspected pedophiles.
