SYDNEY - School bullying is the biggest fear of Australian parents, new research has revealed.

A survey of 500 parents by parenting organisation Generation Next has found that 60 per cent believe bullying is a bigger concern than binge drinking and drug use.

Generation Next founder Dr Ramesh Manocha said the emergence of cyber-bullying among children has heightened parent's concerns.

"We do have to ask the question whether parents are underestimating the power and reach of cyber-bullying," Dr Manocha, who is also a father, said in a statement.

"It's far more intrusive and relentless than playground harassment and has the potential to do lasting damage to a young person's psyche."

Earlier this week the federal government announced it was turning to school students to help devise policy to combat cyber-bullying.

A group of 305 students aged 11 to 17 will provide advice via a secure website and at face-to-face meetings.