A three-member panel convened on Saturday to decide whether Folau, a fundamentalist Christian, breached RA's code of conduct with a post on social media that said hell awaits 'drunks, homosexuals, adulterers' and others.
RA and Folau's Super Rugby team, the New South Wales Waratahs, have already publicly committed to terminating Folau's contract, which local media reports say is worth A$4 million (£2.1 million).
The 73-test fullback was served last month with a breach notice that said his social media post had 'disrespected' people on the basis of their sexuality.
Folau, RA chief executive Raelene Castle and Wallabies coach Michael Cheika all gave "oral evidence" on day one of the hearing, the governing body said in a statement.
The offending post, which has attracted 53,000 'likes' and 47,700 comments, remains on Folau's Instagram page (www.instagram.com/izzyfolau/).
(Reporting by Nick Mulvenney; Editing by Sudipto Ganguly)
