Perth Children's Court has to determine whether an 11-year-old boy who raped an eight-year-old boy has the capacity to understand the court process.
The boy, who was baby-faced and appeared younger than his age, had his sentencing delayed after fronting court on Tuesday.
He had previously pleaded guilty to one count of sexual penetration of a child and one count of threatening to kill.
Magistrate Andree-Marie Horrigan ordered a report to determine whether the accused child was fit to understand what was going on.
"I read the psychologist report... it raises issues of capacity in my view," she said.
"It struck me that that he needed to seek a fitness report."
The boy's lawyer Neville Barber said the child understood that what he did was wrong.
"[Boy's name] is well aware of what he should not have done... he pleaded guilty on the last occasion," he said.
The boy's face was covered with a towel as he left court with a woman's arms wrapped around him to shield him from awaiting media.
He only spoke during the brief court appearance to say "yep" when asked if he understood his bail conditions.
Asked by Magistrate Horrigan if he remembered what happened the last time he appeared in court, he indicated he did not.
Parents on Monday had begun pulling their children out of the boy's Perth primary school after discovering he was attending, saying they were not told of his alleged offending until they read about it via social media at the weekend.
The eight-year-old victim attends a different school.
WAtoday understands part of the offending student's bail conditions is to attend school and be supervised during recess and lunch breaks at all times.
However one mother who attended a meeting on Monday at the school in Perth's north with other concerned parents told Radio 6PR the boy was not being supervised.
"He's supposed to be supervised in the library [at recess and lunch]... one parent told me her son has been playing with him at lunch time for the last three weeks," she claimed.
"We just want the best for our children, we want our children to be safe, and of course this child needs help, he needs to be in the right care and if he is at the school, he needs to be supervised at all times.
"Parents should have the right to know that there is a sex offender among their children."
On Tuesday however the Education Department told WAtoday the child would no longer be going to that school.
"The Department for Child Protection and Family Support has informed the Department of Education that the child in court today won't return to the school," a department spokesperson said.
Earlier the department stressed the student was being constantly supervised by two staff members while at school.
"The Court sets bail conditions and, in this case, has not restricted the child from attending school," it said.
"It is an offence for anyone, including a school, to publish information which could lead to the identification of a child involved in court proceedings.
"WA's School Education Act guarantees the right of every child to an education, irrespective of a range of factors, which may include criminal charges.
"The school is doing everything reasonably possible to ensure the safety of all students."
The boy had his bail renewed and will face court again in March.