'At least I'm not a homophobe': Shorten, Bernardi exchange sharp words

Opposition Leader Bill Shorten and outspoken Liberal senator Cory Bernardi have swapped sharp words about the Safe Schools program.

Leader of the Opposition Bill Shorten. Source: AAP

Labor leader Bill Shorten and outspoken Liberal senator Cory Bernardi have exchanged sharp words over a controversial taxpayer-funded program which teaches students about gay and lesbian issues.

Prime Minister Malcolm Turnbull has ordered a report on the operation of the Safe Schools program amid growing unrest from some of his backbenchers including Senator Bernardi.

As Mr Shorten was telling reporters about the "ridiculous" obsession the Liberal Party's right wing had with the program, Senator Bernardi happened to walk past.

"That would be the chap," the opposition leader said.

Senator Bernardi hit back, calling Mr Shorten a "fraud" and added: "At least I'm honest".

Mr Shorten responded: "At least I'm not a homophobe".

Labor supports the program, saying children have a right to go to school and not be bullied.