Katter, who sits as an independent in federal Parliament, is a colourful and controversial politician whose electorate covers a vast chunk of north Queensland, symbolised by his trademark Akubra hats.
The state branch of his new party is contesting its first election with the goal of becoming the state's third political power, pushing a conservative social agenda and robust opposition to government intervention in lifestyle.
"If you like shootin', huntin' and fishin', you know we exist," state leader Aidan McLindon says on the party's website.
On Sunday the party launched a new campaign, featuring an image by French photographer Franck Camhi of two gay friends, which he took to illustrate the issue of gay adoption and which was sold through an online image gallery.
The image features in TV advertisments that attack Newman and federal Greens leader Bob Brown.
Newman has personally supported gay marriage but has said he abided by official LNP opposition, which will directly impact on Queensland's new civil union legislation.
A voiceover asks if voters can really trust Newman to stand up for family values and resist the Greens and other minority groups, and warns: "Then think again. The LNP leader supports gay marriage just like Greens leader Bob Brown."
Camhi told the Sydney Morning Herald it was wrong to use his work in the anti-gay ads and that he would stop it if he could.
The campaign brought a barrage of anger from all sides of politics, including three Australia Party candidates who condemned it as "offensive", "appealing to the lowest common denominator" and "hideous".
Shadow Treasurer Joe Hockey and former Liberal leader Malcolm Turnbull attacked it as "a homophobic shocker" and "petty and pathetic", and gay activists intend complaining to the Advertising Standards Bureau.
Katter's gay half-brother Carl told ABC radio that the campaign ignored the high level of support for marriage equality in Queensland, and was "totally disrespectful of the many gay Queenslanders who proudly contribute to their state every day of their lives".
Katter, who was offered police protection after death threats against him and other party officials, said he respected his half-brother for speaking out but that "other people are entitled to their morality, we're entitled to ours".
Newman told Channel Ten yesterday that while the advertisements were "negative and nasty ... grubby American-style political campaigning" he would review civil union laws if he won power - but not as a priority.
Newman, meanwhile, is facing his own problems. While the LNP is soaring ahead in the polls, his chances of winning the western Brisbane seat of Ashgrove are receding, with the latest Galaxy poll predicting he will lose to Labor's Kate Jones.
And his party has been embarrassed by its candidates: two were dumped - one for visiting a swingers' club and the other for drink driving - while another was linked to a soft porn internet site, and a female campaign worker to extremist groups on a social networking site.