In his Christmas message to followers, Archbishop of Sydney Anthony Fisher referred to the same-sex marriage debate and the findings of the Royal Commission into Institutional Child Sexual Abuse.
"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.
"They are generously responding to the call to be priests and prophets, servant leaders and saints, the spiritual heroes we need for our times."
Earlier this month, the royal commission handed down its final recommendations that, if enacted, would significantly change the way the church operated in Australia.
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.
