Cardinal Pell says he is looking forward to clearing his name.
"I'm looking forward finally to having my day in court, I am innocent of these charges. They are false. The whole idea of sexual abuse is abhorrent to me."
Vatican spokesman Greg Burke says Pope Francis has granted Cardinal Pell a leave of absence to defend himself.
"The Holy See has learned with regret the news of charges filed against Cardinal George Pell for decades old actions that have been attributed to him. Having become aware of the charges, Cardinal Pell, acting in full respect for civil laws has decided to return to his country to face the charges against him."
Cardinal Pell is the Pope's chief financial adviser.
He is the highest-ranking Vatican official to be charged in the sexual abuse scandal.
Victoria Police Deputy Commissioner Shane Patton says Cardinal Pell has been treated the same as anyone else in an investigation of this nature.
"Cardinal Pell is facing multiple charges in respect to historical sexual offences and there are multiple complainants relating to those charges. During the course of the investigation in relation to Cardinal Pell there has been a lot of reporting in the media and a lot of speculation of the process that has been involved in this investigation and also the charging. So for clarity I want to be perfectly clear: the process and the procedures that have been followed in the charging of Cardinal Pell have been the same that have been applied in a whole range of historical sex offences whenever we investigate them."
Commissioner Patton says Cardinal Pell was charged on summons due to advice that was received and sought from the Office of Public Prosecutions.
He says the final decision to charge Cardinal Pell was made by Victoria Police.
Deputy Commissioner Patton says Cardinal Pell has a right to due process.
"It is important to note that none of the allegations that have been made against Cardinal Pell have obviously been tested in any court yet. Cardinal Pell, like any other defendant, has a right to due process and so therefore it is important that the process is allowed to run its natural course. Preserving the integrity of that process is essential to us all and so for Victoria Police, it is important that it is allowed to go through unhindered and allowed to see natural justice is afforded to all the parties involved, including Cardinal Pell and the complainants in this matter."
Former Catholic priest Paul Collins calls the charges unprecedented.
"They'll be very considerable surprise in the Vatican. It's going to very very difficult for Pope Francis as to what he's going to do. He did say a couple of years ago when these charges were first mooted that he would let the legal process take its course. Well it's taken its course now, he has to make his decision."
Victim advocate Dr Pam Stavropoulos from the Blue Knot Foundation says the fact charges have been laid at all is a victory.
"For so long people who've been respected in public life have been seen as untouchable, but the fact that so prominent a person is now facing these charges does uphold these principles that no one is above the law."
The Cardinal will not be attending any public church events in the foreseeable future as he begins a leave of absence.
Victoria Police say Cardinal Pell will appear in Melbourne Magistrates Court on July 18 for a filing hearing.
