Shadow attorney-general Mark Dreyfus, who is Jewish, was booted from the chamber after he leapt to his feet to protest the remarks. There was outcry from Labor with at least four opposition frontbenchers standing up in protest and a Jewish Labor MP Michael Danby walked out in protest.

Prime Minister Tony Abbott withdraws his "Dr Goebbels" remark in question time on Thursday. Credit:Alex Ellinghausen

Mr Abbott was responding to a question from Mr Shorten about whether a debt level of about 60 per cent of GDP would "see Australia lose its AAA credit rating".

"Such a question from such a Leader of the Opposition, it's like the arsonist complaining about the fire," Mr Abbott said.

He continued to describe Mr Shorten as "the Dr Goebbels of economic policy" for his promotion of Labor's economic management in government before immediately crying "I withdraw, I withdraw, I withdraw, Madam Speaker".