Greens leader Richard Di Natale has interrupted a tribute to Shimon Peres to accuse the former Israeli president of overseeing the death of civilians.
Mr Peres died last month at the age of 93 with tributes flowing from around the world, many making note of his receipt of the Nobel Peace Prize.
A government motion agreed to by the Senate on Thursday also referred to the 1994 prize, praising him for "advancing the cause of peace in the Middle East".
Senator Di Natale told parliament those who awarded Mr Peres the prize later regretted that they couldn't recall it, based on his subsequent actions.
"He was the father of the settler movement which involves the confiscation of large swathes of Palestinian land," he said.
"In 1996 he oversaw Operation Grapes of Wrath which involved the death of 154 civilians in Lebanon and involved the shelling of a UN compound."
Mr Peres had also been described as an architect of Israel's nuclear weapons program which remained outside the scrutiny of the International Atomic Energy Agency, he said.
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