Remarks comparing the federal government to the Nazi party are offensive and should be withdrawn, says incoming attorney-general Mark Dreyfus.
Mr Dreyfus called on Opposition Leader Tony Abbott to direct Mr Pyne to withdraw and apologise for the comments.
"These immature and offensive comments have no place in Australian political debate," Mr Dreyfus told journalists on Sunday.
Mr Pyne said the resignation of two senior ministers and Prime Minister Julia Gillard's subsequent reshuffle showed the government was divided and dysfunctional.
"This is an attack on the whole of the Australian government. It is inappropriate," Mr Dreyfus said.
"These comments are deeply hurtful to Holocaust survivors, they are deeply hurtful to any right-thinking Australian."
However, Mr Dreyfus defended his own comments last year comparing Mr Abbott's campaign on the carbon tax to Nazi propaganda minister Joseph Goebbels.
"That's a quite different thing, it's a very, very specific and targeted comment about the propaganda techniques."
"It's a well known term in relation to modern propaganda theory to refer to Goebellian."
Asked about his law reform agenda for the year, Mr Dreyfus said he was yet to be sworn in and receive a briefing but was honoured to be chosen for the role.
He said his focus was on the legal system protecting all Australians including the young, elderly, new arrivals and outspoken journalists.
"I'll bring values I've long held about the importance of the law reflecting national values like fairness and equality of opportunity."