One Nation founder Pauline Hanson has failed in her bid to win a seat in the New South Wales Upper House.

Ms Hanson's loss was confirmed this morning after the distribution of preferences by computer, more than a fortnight after the state election.

The 56-year-old had looked a strong chance for victory after all primary votes were counted.

Ms Hanson was sitting in 20th position ahead of Greens candidate Jeremy Buckingham and Sarah Johnston from the Nationals.

But preferences went against her to instead give the final positions to Mr Buckingham and Ms Johnston.

The 2011 election was Ms Hanson's second attempt at the NSW Upper House after she narrowly missed out in 2003.

Asked if Australian voters had seen the last of her, Ms Hanson said: "Do you think it would be?"

"You need me around to keep the bastards honest," she said.

Ms Hanson says she is disappointed to have missed out on the seat and will consider forming another political party.

"It has clearly shown in this election people are fed up with the major political parties. People want an honest voice on the floor of parliament," she said.

"All I'm saying is [forming a party] is just something to consider.

"I've received a lot of support from the public and it's something that I will take away from here and I will consider it."

Ms Hanson has also called for reform of the state's voting system, saying that not having her name above the line on the ballot paper cruelled her chances.

She says the rule favours major parties over independent candidates.

"I think the Government needs to have a look at the voting system," Ms Hanson said.

"When you have over 230,000 informal votes and you have near 200,000 blank votes, there is something wrong with our system, and people need to be better educated when it comes to voting.

"It is clearly leaning towards the political parties controlling the voting in this state.

"In all fairness, and for true democracy, allow everyone to have their name above the line."

The result leaves the state's Coalition Government with 19 of the Legislative Council's 42 seats.

Labor holds 14 seats, the Greens five, while the Christian Democrats and Shooters and Fishers party have two seats each.

The Government will have to seek the support of the crossbench to pass legislation if Labor and the Greens combine to oppose it.

It is more than 12 years since Ms Hanson held public office as the Federal member for the Queensland seat of Oxley.