Far out!! That is not on! That principle sounds umm... I'm not sure what to say??..Have you checked the Education Qld Website for info? If you do a search on their website for Bullying, it brings up a few results, I found a link on there to a website called bullyingnoway dotcom dotau. I copied this from their website...

We all have the right to learn in a safe and supportive school environment that values diversity - an environment free from bullying, harassment, discrimination and violence.

We all have the right to be treated with fairness and dignity.

We all have a responsibility to keep others safe and to treat them in the same way - with fairness, dignity and respect
I'd start by saying to the principle that he should read this!

Does your school have a website? I looked at ours and they have info on there about their behaviour management policy. I can PM a link to you if you want, not sure if it will help or not?
I'd defiantely be telling the principle to sort it out, get a good system in place that deals with bullying, and if not you will go to education qld..

Nic