State's last One Nation member quits over party funding

Pauline Hanson has lost her last voice in one state's parliament after her remaining MP quit her party over alleged funding issues.

NSW MP Tania Mihailuk announced her resignation from One Nation on Friday evening, saying she came to an "impasse with the party".

"Members of parliament owe a duty to their constituencies to be confident that funds are administered transparently, and in keeping with the NSW Electoral Commission's legislative requirements," she posted on Facebook.

"I feel I can't continue to be the public face and representative of the party in NSW when I'm not informed fully about the administrative arrangements of the party."

Ms Mihailuk said she respected the party was Ms Hanson's and would remain a right-wing conservative independent on the crossbench.

The national One Nation leader now has no members in NSW parliament after upper house MPs Mark Latham and Rod Roberts quit the minor party in 2023 after claiming under parliamentary privilege that officials had misappropriated taxpayer funds.

Mr Latham alleged more than $270,000 had been moved out of the state party and federal executive in recent years for merchandise and equipment, triggering a NSW Electoral Commission inquiry.

In one instance, he said $102,000 in taxpayer funds paid to NSW One Nation after the 2019 election was allegedly redirected to the party's Brisbane office and used to buy warehouse equipment and merchandise.

The money was later returned to the party, Mr Latham said.

Ms Hanson defended her party at the time, saying she was confident One Nation's finances were in order and compliant.

Ms Mihailuk was elected as a One Nation member for Bankstown at the 2023 NSW election.

She resigned from the NSW Labor Party in 2022 claiming the party was "too woke" after being demoted from the shadow cabinet by then leader Chris Minns.

Her term of service expires in 2027.