In first interview since police decided not to charge the former MP, Mr Goff - who failed to tell party president and leadership contender Andrew Little about the looming scandal - says he would not have done anything differently.
Labour leader Phil Goff today defended his handling of the Darren Hughes affair and says it is up to the former MP if he wants to make a political comeback.
Last week police decided not to charge Mr Hughes following allegations he sexually assaulted an 18-year-old male university student at the Wellington home of Labour deputy leader Annette King in March.
Mr Hughes, 33, resigned as Labour's whip, then as an MP, after the allegations became public.
He told Mr Goff as soon as the complaint was made but no action was taken.
When the allegation became public, Mr Goff stripped Mr Hughes of his education spokesman and party whip roles.
Questions were raised about Mr Goff's handling of the case, with some saying he should have informed his caucus and Labour Party president Andrew Little when he first became aware of the investigation.
It has also been argued that had Mr Hughes been stood down immediately he would not have felt he had to resign.
In his first interview on the subject since the police decision, Mr Goff today stood by his handling of the incident saying he wouldn't have done anything differently.
"I don't think it could have been handled in a way that would have left his position untouched as a Member of Parliament," he said on Radio New Zealand.
"He could have been stood down at the outset, that would have been against the presumption of innocence that I think every New Zealander...is entitled to."
The media would still have intensely scrutinised the case.
"Darren made the decision himself, that he believed that given the media attention...that he was left with no choice but to step down from Parliament."
Mr Goff said MPs lived in goldfish bowls and had to meet high standards but everyone should be presumed innocent until proven otherwise.
However Mr Hughes had to face "wild allegations" that meant he could not continue as an MP.
Asked about Mr Hughes' own judgment Mr Goff said; "he says he did nothing wrong, only he, the complainant and the police that investigated that case have an answer to that question".
"It's always best when you are in the public eye not to get yourself into circumstances that can be misunderstood or misjudged and that clearly happened on this occasion."
Mr Goff said Mr Hughes could still have a future in politics.
"I think the potential is there for him to come back, it won't be at this election but that's a decision for him...I have an enormous amount of time and respect for Darren Hughes."
Wellington District field crime manager Detective Inspector Mike Johnson last week said evidence had been properly considered, both internally and by the Crown Solicitor's Office in Wellington.
"After this careful consideration, the allegations do not reach the evidential threshold required to bring charges," Mr Johnson said.
"As a result, no charges will be brought against Mr Hughes."
