The Rev. James Patrick Fletcher died in prison in 2006 while serving an eight-year sentence for raping an altar boy, The (Sydney) Telegraph reported.
Peter Gogarty, a victim of Fletcher's abuse, said the grave of the pedophile priest is marked with a bronze plaque detailing his career and refers to him as "Reverend Father."
"How can this man, a convicted pedophile, die and be buried in the priests' section of the cemetery?" said Gogarty. "Fletcher should never have been buried as a priest."
"That was the ultimate insult to Fletcher's victims," he said.
A spokesman for the Catholic Church said someone considered a "manifest sinner" is not denied a funeral if they "have given some sign of repentance before death."