The radio DJ accused a female singer of looking like a man and a troupe of square dancers have claimed that they were victimised by Sandilands and his fellow judges Dannii Minogue and Brian McFadden as soon as they walked on stage.
Square dancing caller Darren Taylor told The Daily Telegraph: "I have never experienced anything like it before. I know that [the show] has a bad reputation as being a bit 'yeehaw' and that's why I was concerned about going on in the first place.
"We didn't apply. They called us and said they really wanted square dancers this year because they wanted it to be a community show.
"But as soon as we walked out Brian buzzed us. He said one of our girls looked like a toilet-roll doll. Dannii also zeroed in on what we were wearing and Kyle said I had my jumper tucked into my pants.
"It was embarrassing. When we finished we had to stand there for minutes while the audience laughed at us. One person was teased for their stutter. They only showed about one quarter of what they said to us. If they'd showed it all, people would have been shocked at how harsh they were."
Melbourne singer Heather Cook said that she was left "devastated" after Sandilands mocked her weight and asked her: "Are you male or female?"
She said: "I felt the whole experience was devastating, and very unfair and unnecessary, and he destroyed any opportunity I had of demonstrating my voice to its fullest potential."
Sandilands defended himself, saying that he wasn't hired to be "bland and boring".