The South Australian Senator also said the Liberals' change from Malcolm Turnbull to Scott Morrison meant his party was "no longer valid" but did not say whether he will quit parliament or serve out the remaining three years of his term as an independent.

Senator Bernardi famously quit the Liberals in 2017 complaining that the party was heading in a direction that was too left-wing under then-prime minister Malcolm Turnbull.

Inspired in part by the election of Donald Trump as US President in November 2016, he formed his Australian Conservatives party in early 2017 after returning from a stint in New York.

In its first year, his party boasted 22,000 members.

But any early momentum failed to translate at the ballot box with Senator Bernardi's party failing to get any candidates elected in the South Australian, Victorian and most recent federal election where Scott Morrison managed to unite the Liberals' warring moderate and right factions to lead the government to an unexpected election win.

Senator Bernardi said the leadership change had stopped the Liberals "haemorrhaging supporters" and altered Australian Conservatives fortunes.

"The decision to make Scott Morrison Prime Minister truly changed the political climate and our political fortunes.

"Rather than punish the Coalition for another new leader, many Conservatives breathed a sigh of relief that a man of faith and values was leading the Liberals back to their traditional policy platform.

"The inescapable conclusion from our lack of political success, our financial position and the re-election of a Morrison-led Government is that the rationale for the creation of the Australian Conservatives is no longer valid.

But he said he was "not quite ready" to exchange Canberra for fishing at Coffin Bay in South Australia.

The party will be deregistered with the Australian Electoral Commission by July 2019.