People have taken to social media to express their outrage at the song.
"'Wonky Donkey' and Craig Smith fans - you'll probably want to rethink your patronage in light of his deeply racist 'Golliwog Song' (and video). There's a bunch of discussion about this going on round the place right now," a Facebook user posted.
"Smith appears to be still promoting this song and profiting off it, even if he isn't performing it live on his current tour. Hopefully venues for his tour will take note of this. It's NOT GOOD ENOUGH for him simply not to be performing it live right now," she added.
"Please stop singing your 'Golliwog Song' as it is actively harmful and helps to perpetuate racist stereotypes. As children are your audience, it is even more questionable," another person posted on Craig Smith's Facebook page.
"Your song about bringing golliwogs back is horrible and the worst kind of white defensiveness. Pulling your book from my shelves and definitely NOT buying your next one," another person said.
It is not known whether the song will be part of Smith's upcoming live shows.