Male Muslim students at a NSW public school are officially allowed to refuse to shake hands with women, due to religious beliefs.

One Nation Senator Pauline Hanson has slammed the controversial policy at Hurstville Boys Campus, while former Australian of the Year Dick Smith labelled the move as “wrong”.

“I can’t believe this is happening in Australia,” Ms Hanson said.

View photos Hurstville Boys Campus. Picture: 7 News More

The controversial policy has the backing of the Education Department, but Mr Smith says the tradition is “un-Australian”.

View photos One Nation Senator Pauline Hanson. Picture: 7 News More

“These young boys are being taught the wrong thing from the start, we have equality here,” Mr Smith said.

“They should be taught to be tolerant, especially when it comes to females, not to say ‘Oh you’re not allowed to touch one’.

“That’s completely un-Australian if anything is.”

View photos Former Australian of the Year Dick Smith. Picture: 7 News More

According to Islamic Hadith, it is “better for you to be stabbed in the head with an iron needle than to touch the hand of a woman who is not permissible to you”.

Islamic leaders have weighed in on the controversial policy, saying it was up to the individual to make a choice.

View photos The Hurstville Boys Campus. Picture: 7 News More

Story continues