Le Page Primary School Principal Garry Martin switched "Gay your life must be" with "Fun your life must be". He said the children get the giggles, or even roll around on the floor in fits of laughter, when they sing the word gay.

Martin added that students sometimes used the word gay in a disparaging way in the school yard.

"For example, if a boy is not particularly good at sport, they will refer to that child as gay," he told Fairfax Radio.

"They have a vague idea how it can be used but they don't really know the full extent of it."

Several parents of children at the school complained about the move, claiming it was political correctness gone mad, while GLBT rights groups said it brought unnecessary attention to the word and could undo years of efforts in trying to introduce "respect and diversity" into Australian schools.

Martin has since told the Nine Network he should have discussed the true meaning of the word with the children.

"In hindsight that is what I probably should have done, I just didn't realise the implications," he said.

"I wasn't trying to incite or insult gay people, or trying to violate the copyright of Larrikin Music; it was just a decision at the time that I thought would minimise a disruptive atmosphere with grades one and and two."