The politician, who has been in the top job three weeks, has now deleted his video, which featured Fatman Scoop's Be Faithful.
Scott Morrison, who has only been in the top job for three weeks, put the 11-second clip online showing MPs raising their hands during question time on Thursday.
It was overlaid with a snippet from rapper Fatman Scoop's hit Be Faithful.
The PM's video, which was posted on Twitter, Instagram and Facebook, did not contain any of the song's suggestive lyrics, instead featuring the lines: "You gotta hundred dollar bill put your hands up.
"You gotta fifty dollar bill put your hands up. You gotta twenty dollar bill put your hands up. You gotta ten dollar bill put your hands up."
But his use of the track has been ridiculed and criticised by social media users as "offensive" and a "dumb move".
Some questioned his ability to lead the country and called for an election.
The clip was deleted and Mr Morrison tweeted: "The full lyrics of the song used in my earlier video from QT today were just not OK.
Mr Morrison was sworn in last month as the country's sixth new PM in 11 years, replacing Malcolm Turnbull after a Liberal Party coup.