Jessica Whelan has confirmed she will run as an independent for Lyons after being dumped by the Liberals because of alleged racist social media comments.
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Ms Whelan said she had worked too hard to throw it all away.
And she believes she has a good chance to defeat sitting Labor Lyons member Brian Mitchell.
"I'm still on the ballot paper so I guess that makes me an independent," Ms Whelan said.
"I have put in so much effort and I feel free of the Liberals to defend myself.
"I wasn't allowed to speak out before.
"I didn't get to speak a word when I was with the Prime Minister yesterday."
Lyons Labor MHR Brian Mitchell said he believed Ms Whelan was still in the race.
"I've got to keep working hard," he said.
"It's not over.
"She stays on the ballot paper and I can't take it for granted.
"John Howard disendorsed Pauline Hanson and she was elected."
Ms Whelan rejected suggestions she could repeat what One Nation's Pauline Hanson did in 1996 after being disendorsed by Prime Minister John Howard for anti-Asian and anti-Aboriginal comments.
Ms Hanson went on to win the seat but sat as an independent.
"I don't want people to refer to me as a Pauline Hanson," she said.
"We are very different people.
"We live in a multiculural society and I love that about Australia."
Ms Whelan said she had contacted a lawyer about the Facebook posts and strenuously denied making anti-Muslim comments which she described as "vile".
She believes her prospects for winning Lyons are good despite the negative attention she has received.
"If I'm elected there's a good chance I will work with the Liberal Party," she said.
"I resigned because I knew I had to for the party, but I can now defend myself."
Ms Whelan also said she stood by her comments that Youth Allowance payments should be looked at with a view to increasing it.
"It should be looked at," she said.
"I made those comments about it and the party thought it was a mistake but I stand by them."
