Terror Nullius has been described as a "political revenge fable" that mashes together iconic Australian imagery.
But the film's content - which includes juxtaposing former Prime Minister John Howard's voice with scenes from Mad Max - has sparked controversy.
The philanthropic Ian Potter Cultural Trust - which provided $100,000 to the production - has now withdrawn its support.
Filmmakers Dominique and Dan Angeloro said it's because the 50-minute work isn't in line with the trust's conservative political values.
'Undermining myths'
Denis Moore, who has seen the film said it was a disappointing decision by the trust.
"The film is an incredible mixture of undermining myths that we inhabit, particularly as white Australians," he said.
"It's just a challenging piece of art and there's no reason for it not to be supported."
Canadian tourist Uli Sato agreed: "I understand why people would see it as controversial but I think that it had a really great message and really relevant issues."
In a statement, the trust said Terror Nullius is a very controversial piece of art and the trust respects the Angeloro sisters' right to create it, show it and for audiences to form their own opinion in respect of its message.
"The Ian Potter Cultural Trust has stated to the Australian Centre for the Moving Image that in the circumstances it does not wish to be associated with the marketing or publicity promoting this production," the statement said.
"All financial commitments made by The Ian Potter Cultural Trust as part of The Ian Potter Moving Image Commission (IPMIC) will be met in full."
The film has started screening this week at the Australian Centre for the Moving Image (ACMI) in Melbourne's Federation Square.
Re-thinking Australia
ACMI representatives said they are proud to present Terror Nullius, describing it as a satirical, confronting and political work of art that pushed viewers to re-think Australia's history and future.
Other film-goers also appeared to enjoy the product.
Artist Bella Hone-Saunders described it as an incredible collage.
"It's using what was already created and available," she said. "A lot of animal revenge came in ... Babe the pig ... Skippy as a feminist."
Student Tony Goodfellow said Terror Nullius was extremely funny. "A lot of black humour, very black humour. And satire. It's very smart."
