Salvos inquiry continues in Sydney (AAP)

A national inquiry into the Salvation Army's handling of child abuse allegations resumes in Sydney on Monday.

Over the past two weeks the royal commission into child sex abuse in institutions has heard how some victims of abuse in army homes in NSW and Queensland felt they weren't believed when they approached the charitable organisation with complaints.

The commission is also examining how the army dealt with officers about whom allegations were made.

James Condon, the Salvation Army commander in NSW, Queensland and ACT was questioned last week about the continued employment of one officer, Colin Haggar, who confessed to abusing an eight-year-old girl in 1989.

Commissioner Condon told the commission that in the early 90s he went with Mr Haggar to the Parramatta police station to report the assault.

The commission can find no record of that and Colin Haggar was never charged.

The commission has heard that although Mr Haggar was dismissed in 1990 he was allowed to re-join the army in 1993. He was promoted and until late last year was the director of a crisis shelter for women and children in Sydney.

He has since been forced to retire and demoted from lieutenant colonel to major.

On Monday his wife, Kerry Haggar, who up until a week ago was on the executive of the army, is expected to give evidence.

Major Peter Farthing who heads the army's personal injuries complaints committee and who was involved in counselling Mr Haggar after the 1989 incident will also be in the witness box this week.

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