Australia's Pauline Hanson may form new party

Pauline Hanson. Photo / Richard Robinson

Former One Nation leader Pauline Hanson says she will consider forming another political party, after failing narrowly to win an NSW upper house spot as an independent.

Ms Hanson says she is disappointed to have missed out on a seat in the Legislative Council despite gaining a higher primary vote than the winners of the last two spots.

The distribution of preferences from the March 26 election, conducted at the NSW Electoral Commission's western Sydney headquarters on Tuesday, saw the Greens and Nationals leapfrog Ms Hanson to take the last two of the 21 seats up for election.

Speaking to reporters afterwards, Ms Hanson called for reform of the state's voting system.

Not having her name above the line on the ballot paper had disadvantaged her chances, she said, adding the rule favoured major parties over independent candidates.

"I think the government needs to have a look at the voting system," Ms Hanson said.

"When you have over 230,000 informal votes, and you have near 200,000 blank votes, there is something wrong with our system, and people need to be better educated when it comes to voting.

"It is clearly leaning towards the political parties controlling the voting in this state.

"In all fairness, and for true democracy, allow everyone to have their name above the line."

Asked if she would set up a new political party to overcome any systemic prejudice against independents, Ms Hanson said it was "something to consider".

"It has clearly shown in this election people are fed up with the major political parties. People want an honest voice on the floor of parliament," she said.

"All I'm saying is it (forming a party) is just something to consider.

"I've received a lot of support from the public, and it something that I will take away from here and I will consider it."

- AAP