Labor MP Daryl Melham has spoken out against his party's policy saying the funding cuts are damaging cultural institutions such as the National Library.
He says there should be another way of finding savings from institutions.
"This is one of those instances where in my humble opinion Mr Deputy Speaker, one size doesn't fit all," he said.
"That's why the operation of the efficiency dividend in my humble view needs to be looked at in relation to these cultural institutions.
"And I want to note Mr Deputy Speaker, this is the first time in 22 years that I've spoken against an effective measure from a Labor point of view."
CPSU national secretary Nadine Flood says Mr Melham should be applauded for fighting the cuts.
"It's an unusual step for a Labor member of parliament to take. I think it's gutsy and I think he's right. This is doing real damage to our cultural institutions and its time to find a better solution than the so-called efficiency dividend," she said.
"We've identified that almost every institution is cutting jobs and most of them are also cutting exhibitions and acquisitions.
"This is doing real damage and we certainly continue our calls on the government to actually take notice."
