Case dropped against WA boy, 10, who raped eight-year-old child

A 10-year-old boy who pleaded guilty to raping and threatening to kill an eight-year-old boy will not be sentenced after charges against him were dropped on psychiatric grounds.

The case shocked Perth residents when it was first revealed in February that the small schoolboy had been charged with sexually penetrating a child but had then been allowed to return to his suburban school and interact with other children.

This prompted an outcry from parents and he was removed from the school.

The Department of Public Prosecutions said in Perth Children's Court on Friday that it had decided not to continue with the case after taking into account a psychiatric report that was ordered by magistrate Andree-Marie Horrigan.

The report confirmed Ms Horrigan's concerns about the boy's capacity to understand what he had admitted to and proceedings against him and therefore, his fitness to plead and stand trial based on section 29 of the Criminal Code.

"People that fall into this category should not be criminalised notwithstanding how serious the matter is and the matter should be discontinued," Ms Horrigan told the court.

Section 29 states: "A person under the age of 14 years is not criminally responsible for an act or omission, unless it is proved that at the time of doing the act or making the omission the person had capacity to know that the person ought not to do the act or make the omission."

The boy was in court with a middle-aged adult male relative.

A woman who works for the Department of Child Protection told the court the department was working with the boy and his family, and requested a copy of the court-ordered psychiatric report.