The Victorian blacksmith became a federal politician in 2010 despite winning just 2.3 per cent of the vote.

Tony Abbott led the tributes for Mr Madigan, who served one six-year term in the upper house.

"It was a privilege to work with him in the parliament, on issues where we were like-minded," the former prime minister tweeted on Tuesday.

"He was a very decent man with an old-fashioned sense of courtesy and respect for others. My thoughts and prayers are with his family at this sad time."

Mr Madigan was the first Democratic Labour Party senator since 1974 but left the party in 2014 to sit as an independent.

Mr Abbott's mentor was Bob Santamaria, the long-time intellectual leader of the DLP.

"John Madigan was a fine representative of a worthy political tradition," Mr Abbott said.

"The DLP sought to be the Labor Party at its best: strong on Australian values and determined to get working men and women a fair go."

Mr Madigan famously described submarines as the "spaceships of the ocean" as part of his advocacy for naval shipbuilding in Australia.

He failed to be re-elected at the 2016 double dissolution election after forming his own party based on manufacturing and farming.

Australian Associated Press