The court ruling comes as hundreds of thousands of young Catholics gathered for the opening mass of World Youth Day, the Church's largest youth festival aimed at revitalising the Church.
Reflecting the religious fervour in Sydney, "Ratzinger Rules" was spray painted on a war memorial overnight. Josef Ratzinger is the birth name of Pope Benedict.
Pope Benedict texted thousands of young pilgrims in Australia on Tuesday, urging them to renew their faith.
"Young friend, God and his people expect much from u because u have within you the Fathers supreme gift: the Spirit of Jesus - BXVI," read the first of the Pope's daily text messages which will be sent out during World Youth Day.
In Australia, home to the world's biggest gay and lesbian mardi gras and where abortion and stem cell research is legal, the Catholic Church's teachings often fall on deaf ears.
Some five million Australians describe themselves as Catholic, but less than one million attend Sunday mass and the number may have dropped to about 100,000 in the past five years.
The Pope will attend World Youth Day events from Thursday, culminating in a Sunday mass before some 300,000 pilgrims.
The Pope has said he will apologise to Australian victims of sexual abuse in the church. Broken Rites, which represents abuse victims, has a list of 107 convictions for Church abuse, but says there may be thousands more victims as only a few go to court.
"I'm glad there will be an apology, but the Church needs to do more to alleviate the living hell of those who have endured the ultimate betrayal," said sexual assault lawyer Vivian Waller. "The Church must embrace justice rather than playing legal charades," she said, claiming the Catholic Church in Australia regularly used the legal system to avoid sex abuse cases.
