Hillsong founder Brian Houston has told a Sydney court he was "stunned" and "speechless" when he was first told of historical child sexual abuse allegations against his father, Frank.
Mr Houston, 68, has pleaded not guilty to concealing a serious indictable offence, his father's abuse of a seven-year-old boy in the 1970s.
In Sydney's Downing Centre Local Court, his lawyers are arguing it was reasonable to not report the allegations to police because the victim, who was an adult by the time he learned of them, did not want authorities to know.
Mr Houston on Friday began giving evidence about growing up in New Zealand and moving to Australia in 1978, before he and his father set up churches.
The court heard a weekly meeting in late October or early November 1999 was where then-business manager of the church, George Aghajanian, told Mr Houston of the allegations.
"I could tell by his tone and the look on his face this somehow was going to be bad news," Mr Houston said.
He was told that a man had phoned the church with news that Frank Houston abused a boy in the '70s and mentioned the name of the victim, Brett Sengstock, as well as his mother and where they lived.
Mr Houston said he "knew exactly who we were talking about" because he'd visited that family's home twice in the past.
"How did you feel?" defence barrister Phillip Boulten SC asked.
"Stunned would not be a strong enough word," the witness replied.
"Just speechless."
"I was floored ... because there were individuals involved that I knew, I guess it gave it more likelihood that there could be some truth to this."
Mr Houston testified that he "never heard a whisper" about the claim prior to that meeting.
After he returned from a 10-day international trip, Mr Houston confronted his father in one of the church's offices.
"It was extremely tense, awkward," he said.
He said his father "went all dry in the mouth" as he relayed the allegation.
"He simply said 'that did happen'. He told me it only happened once," Mr Houston recalled.
Frank Houston said the abuse involved "fondling his genitals" and was embarrassed and ashamed, Brian Houston told the hearing.
He said he told his father of the church's "no tolerance policy towards paedophiles", that he would never preach again and would need to leave Hillsong.
Mr Houston said he told several senior church figures and decided it should be escalated to the national executive, as his father's prominence and the "gravity" of the accusation would mean the state executive would be "out of their depth".
He told the court Mr Sengstock's mother "clearly" said he did not want police and encouraged Mr Houston to phone her son.
Mr Houston said during a call, Mr Sengstock said he didn't want his name "splashed all over the church" and vowed to deny it if anyone contacted him.
He claimed Mr Sengstock was also "very dogmatic" about not wanting police involved.
Mr Houston told the court he felt it was his "responsibility" to go to the executive because "to do anything less would be covering things up".
The hearing resumes on Monday.