Hillsong Church has denied it intentionally deceived the Australian charities regulator about its financial records.

The Hillsong megachurch is being sued by a former employee who says she was unfairly suspended from her role in the finance department after she complained about financial misconduct and questionable expenditures.

She alleged dubious financial record-keeping, misappropriation of church finances, and accused Hillsong leaders of using tax-free money for “large cash gifts” to Hillsong founder Brian Houston and his family.

The church's subsidiary, Hillsong CityCare, has strenuously denied these accusations in a defence filed last week. 

The church says its transfer of money overseas was not in breach of Australian regulations and its international operations were not subject to its external conduct standards.

The church is being investigated by the Australian Charities and Not-for-Profits Commission (ACNC), which has been looking through a number of Hillsong's subsidiaries' compliance obligations since March.

More details are accessible here.