Giving evidence to a royal commission hearing in Hobart on Wednesday, Dr Hollingworth said his failure to take action against then-priest John Elliot heightened the distress for a victim, a man who cannot be named for legal reasons.
"I want to make an apology to (the victim) and to all the members of his family for the way which his complaint of abuse against John Elliot was handled when it was first referred to me as archbishop of Brisbane in 1993," Dr Hollingworth said.
Dr Hollingworth was head of the Brisbane diocese from 1990 to 2001 and went on to become governor-general until 2003 when he stepped down over the church's handling of the abuse allegations.
The Royal Commission into Institutional Responses to to Child Sexual Abuse on Wednesday was told that Dr Hollingworth was visited by the victim in August 1993.
He complained of repeated sexual abuse at the hands of Elliot during earlier years when was aged eight to 13 and was associated with the Church of England Boys' Society.
He had contact with the then-preacher at Brisbane's St Barnabas church at Sunnybank on an almost weekly basis during those years.
"On nearly all of those occasions, Elliot sexually abused me," the victim said in evidence on Wednesday.
Elliot served as rector at the Dalby parish until his retirement in 1996, three years after the victim took his complaint to Dr Hollingworth.
"From that first meeting onward I felt that Dr Hollingworth did not want to remove Elliot from the Dalby parish, and that as Elliot had admitted the abuse I should forgive him and move on," the victim said in evidence.
Dr Hollingworth admitted his handling of the matter was poor.
"After a great deal of consideration over the past 22 years I acknowledge unreservedly that my actions were misguided, wrong and a serious error of judgment and that I genuinely regret it," Dr Hollingworth said.
He added that he did not understand the repercussions of child sexual abuse.
"I failed to to make your needs my absolute first priority.
"Instead, I was overly concerned for the needs of Elliot and his family and those of the parish.
"Instead of removing Elliot from his ministry I took the approach I thought would ensure Elliot would not abuse again."
Dr Hollingworth continues his evidence to the commission.
The inquiry is investigating abuse allegations against Elliot, and other lay and clergymen Robert Brandenburg, Louis Daniels, Simon Jacobs and Garth Hawkins (now known as Robin Goodfellow).
Each has served jail time for their crimes except for Brandenburg who died before facing court.
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