The five-year inquiry found tens of thousands of children had suffered abuse in Australian institutions. The Catholic Church had the most cases.
On Friday, Church leaders accepted most recommendations given by the inquiry.
However, they reiterated that breaking confession was "contrary to our faith".
"We are committed to the safeguarding of children and vulnerable people while maintaining the seal," the Australian Catholic Bishops Conference said in a statement.
"We do not see the seal as mutually exclusive."
The Church leaders said they would, however, explore other proposals - including asking the Vatican to relax rules on celibacy.
The royal commission inquiry, which concluded in December, heard more than 8,000 testimonies about abuse in churches, schools and sports clubs.
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