"Stop crying", the teacher tells him, telling other students to go "upstairs" as he walks away.
The boy's mother said her son was pulled to the ground by the handle of his backpack, which was ripped as a result.
He had bruises and scrapes on his knees and has also hit his head.
Principal Christine O'Neill told Fairfax the school had dealt with the incident immediately.
"We were taking statements from the students involved and the teacher so we could ascertain facts to ring the parents and inform them."
The teacher was no longer working at any schools before the Education Council made a decision.