The Truth, Justice and Healing Council said it was up to governments to pass laws to force institutions to be financially liable for sexual abuse, reports the ABC.
The Council's CEO, Francis Sullivan, was responding to a claim by an abuse victim that a religious order in Victoria has tried to avoid paying adequate compensation.
Survivor Ron Kochskamper said the Christian Brothers St Alipius Boys School in Ballarat had nominated its former principal Robert Best, who was jailed in 2011 for his crimes against boys, as the defendant to be sued for negligence on their behalf.
Mr Kochskamper's lawyer, Vivian Waller, said the Christian Brothers would not back Best with their assets.
Mr Sullivan said: "Our job was to create a policy. We don't as a council get involved in the particular cases, and we certainly don't scan the country to try and survey how those cases are going," he said.
"Part of our submission to the Royal Commission is that legislation should be passed by governments that oblige all non-incorporated entities that have anything to do with children to make available an entity for this purpose.
"That would then be the law and make it a lot more binding in negotiations."
The ABC contacted the Christian Brothers but they were unavailable for comment.
CORRECTION PUBLISHED APRIL 1