Mr Hollingworth has resigned from his post as Archbishop of Brisbane but retains the title of bishop within the church, even though he is now the titular commander-in-chief of Australia's armed forces.
A senior clergyman has become Australia's new governor-general - a post which represents the British monarchy and has the power to dismiss the government.
Peter Hollingworth, former Anglican Archbishop of the city of Brisbane, was sworn in with a 21-gun salute as Australia's 23rd governor-general in a ceremony at Parliament House in Canberra.
Mr Hollingworth has resigned from his post as Archbishop of Brisbane but retains the title of bishop within the church, even though he is now the titular commander-in-chief of Australia's armed forces.
And as governor-general he has the power to call a fresh election - as a predecessor did in 1975.
Social critic
As an archbishop, Mr Hollingworth was a passionate advocate of social issues and a frequent critic of government.
Now, he says, as the Queen's representative in Australia it is not his role to interfere in the political process.
There have been many warm tributes for the outgoing governor-general, Sir William Deane, who left office regretting he did not see true reconciliation between black and white Australians.
Sir William complained strongly and frequently about the poor condition of aborigines and was often accused of crossing the line into politics.
Several newspaper editorials today warn Mr Hollingworth not to make the same mistake.
The new governor-general, who is 66, will hold office for five years.