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Independent senator Jacqui Lambie wants to send Australian-made goods to poor countries instead of foreign aid, claiming the money would be better spent "in our own backyard".
The Tasmanian senator has also said voters in her state are worried about Islamic law being imposed in Australia and claimed the size of the Australian Defence Force is a security risk.
The former Palmer United senator has released a 12-point manifesto for her new party, the Jacqui Lambie Network, which she said would give "battlers" a chance to run for Parliament.
The manifesto includes advocating for defence personnel and their families, campaigning for clearer labelling for halal foods, halving the foreign aid budget and resisting any attempts to introduce sharia law in Australia.
Appearing on Sky News, interviewer Kieran Gilbert asked Senator Lambie what prospect there was of Islamic law ever being introduced.
"I would hope that there'd be never any prospect of sharia law being introduced in this country whatsoever, so we're just getting out on the front foot," she said.
When asked if Tasmanians were really concerned about sharia law, Senator Lambie said: "Yeah they do have a concern and many other Australians have a concern and that's why I've stipulated that."
Senator Lambie has long called for the foreign aid budget to be halved even though it has already sustained $11 billion in cuts since the 2013 federal election.
She restated this on Wednesday but appeared to show flexibility on the amount that should be cut.
"Whether it's half, that's debatable," she said.
"We're doing very well with the foreign aid budget in the way we're directing it and the way that we're running it. Sending over money to other countries I just do not believe is the answer. We have some great products here ... we should be sending some Australian-made products to these foreign aid countries instead of just handing out cash.
"That would certainly help out manufacturing [in Australia]."
When asked if she agreed foreign aid was an important component of Australia's security interests the region, Senator Lambie said the size of the Australian Defence Force was a more pressing issue.
"I tell you what a security implication is: when you have a defence force that only fills half the MCG, that's a security issue to me," she said. "So when we can have the opportunity to bolster our defence forces and give our kids jobs and opportunities and that career path … that's more important to me and we need to be looking at that."
The Melbourne Cricket Ground's capacity is roughly 100,000. Some 59,000 people are currently serving in the military, as well as about 19,000 in civilian positions.
Anyone who wants to formally oppose Senator Lambie's bid has until the end of April to lodge their concerns.
