West Australian senator Fatima Payman is set to launch a new political party within days in a bid to hive off disaffected Labor and Greens voters who want more action on cost of living, housing and the environment.

Sources familiar with Senator Payman’s thinking said while a party created by a sitting member of parliament could skip some formalities – such as getting 1500 signed-up members – she needed to move fast to get the organisation officially registered ahead of the next federal election due by May.