LEIGH SALES, PRESENTER: Cory Bernardi is launching himself into an already crowded political space. Several other right wing parties are vying for votes by speaking out against Islam. Pauline Hanson's One Nation that I mentioned earlier is the highest profile of them, of course.

It's fertile political ground. The latest Newspoll has 44 per cent of Australians believing that the Federal Government should follow the lead of US President Donald Trump and make it harder for people from seven mainly-Muslim nations to enter Australia.

This month, a vocal anti-Islamic activist, Kirralie Smith, will face a defamation case brought by the head of the Halal Certification Authority over comments she made in an online video. As Sarah Whyte reports, it's a case that's attracted the support of leading conservative political figures.

KIRRALIE SMITH, AUSTRALIAN LIBERTY ALLIANCE: Hello. How are you going?

BUTCHER: Good, thank you.

KIRRALIE SMITH: I'm after some meat that's not halal-certified.

SARAH WHYTE, REPORTER: On the New South Wales north coast, Kirralie Smith is spearheading a grassroots campaign against Islam.

KIRRALIE SMITH: Do you have meat that's not halal-certified?

BUTCHER: We surely do.

KIRRALIE SMITH: All of this pretty much?

BUTCHER: All of it is halal-free.

KIRRALIE SMITH: Oh, fantastic. That's great. OK.

BUTCHER: What were you looking for?

KIRRALIE SMITH: I think I'll get something for the barbecue.

My primary concern is, and why I started Halal Choices as a website about 7 years ago, was because most halal-certified foods are not clearly labelled. So, the consumer is paying halal fees without their knowledge or consent.

SARAH WHYTE: Kirralie Smith's main beef is the fees associated with the certification process. She's concerned the money could be used to promote Islam.

KIRRALIE SMITH: It's the certification, the fees, where they go, who is benefitting from these things and whether consumers actually need to be a part of that process or not.

ANNOUNCER: Without any further ado, Mrs Kirralie Smith here today.

(Applause)

KIRRALIE SMITH: I do not want religious practices imposed upon me.

SARAH WHYTE: Kirralie Smith is a leading figure in the anti-Islam party, the Australian Liberty Alliance. Formed less than two years ago, the party claims thousands of members across the country. One of its most controversial policies calls for a 10-year ban on permanent resident visas for people from 57 Muslim countries.

KIRRALIE SMITH: We believe that that's where there is obviously a hotbed of extremists and fundamental Islamists who come out of there. It's not going to be the totality of solving the problems of terrorism or Sharia law or any of those things, but it is certainly a good place to start.

SARAH WHYTE: Muslim Australians who'll be watching this would say that only a small percentage of their religion actually involves extremism. What do you... How do you respond to that?

KIRRALIE SMITH: Of course, only a small... Well, it's a growing number of Muslims that are involved in extremism.

Hi, I'm Kirralie Smith, the founder...

SARAH WHYTE: Kirralie Smith is facing a defamation suit brought by Mohamed El-Mouelhy, president of the Halal Certification Authority, over online videos that she presented for another anti-Islam Group, the Q Society.

Why are you suing Kirralie Smith?

MOHAMED EL-MOUELHY, HALAL CERTIFICATION AUTHORITY: To redress the wrongs that she has made. When you make false information about a person, untrue exaggerations, then I think I have every right to sue her and to sue everybody that has supported her and paid for her video.

SARAH WHYTE: He claims Kirralie Smith and the Q Society defamed him by voicing suspicion that halal certification could fund terrorism.

MOHAMED EL-MOUELHY: Halal certification is an industry and it is bringing in a few billion dollars. You know? Last year I think it was about $13 billion, and it is a requirement by all the Muslim countries.

SARAH WHYTE: She says halal or the halal system is funding Muslim mosques and education programs. Is this true?

MOHAMED EL-MOUELHY: What I do with my money is my business, the same like everybody supports their own faith. So why is supporting my faith is wrong and supporting other faiths is right?

JEREMY ZIMET, SLATER AND GORDON: What he does take issue with is the fact that she refers to instances of him being suspected of engaging with terrorist organisations.

SARAH WHYTE: Jeremy Zimet has been closely watching the case and says the new frontier for defamation law is online.

JEREMY ZIMET: It's important for observers to realise that there are consequences for posting publications online, whether it's on social media or review sites, and at the, I guess, extreme end of those consequences is court.

MOHAMED EL-MOUELHY: I think the ones that are making division in the society are the ultra-right. Because I've lived here for 45 years, never had a problem with anyone.

SARAH WHYTE: Kirralie Smith's opinions and political aspirations have caught the eye of conservative figures within Australian politics who will speak at a fundraiser to pay for Kirralie's court costs.

GEORGE CHRISTENSEN, LIBERAL NATIONAL PARTY MP: I'm backing Kirralie Smith because she's raising legitimate concerns that many members of the public share around halal certification, what the money behind halal certification actually goes to.

ROSS CAMERON: Well, I think it's very important that Australians feel free to express sincerely held opinions on matters of public interest, and I have the feeling that if Kirralie loses this action, it sort of throws a wet blanket of apprehension over public debate in Australia.

SARAH WHYTE: You speak about people having the freedom to say what they want in Australia and it should be more open, but I understand you're actually filing for deformation against Mohamed because he called you a racist and a bigot, is that correct?

KIRRALIE SMITH: Yeah, I can't talk about the details of the court case, but there's ongoing social media posts that have been continuously defamatory of us and we see that that's the best way to bring these issues to the public.

SARAH WHYTE: So, by calling you a racist and a bigot, how is that different from your criticisms of Islam?

KIRRALIE SMITH: My criticisms of Islam are based on the fact that the Koran and the hadiths and the other texts incite violence, incite oppression of women and gays and other minority groups and I can back that up.

He says he will back up his claims that I'm a racist and a bigot and we'll see what he can do, but I'm very confident that I'm not a racist, nor a bigot, I'm simply criticising an ideology, I'm not criticising a people group or individuals.

SARAH WHYTE: George Christensen is urging Kirralie Smith to join the Liberal ranks in Canberra. Last year she ran for the Senate for the Australian Liberty Alliance, but the party failed to get a seat, gaining less than 1% of the vote.

GEORGE CHRISTENSEN: If she's ever inclined to join the LNP of the National Party I would encourage that and there may be a future for Kirralie in Canberra.

TOM KING, ANU: The Australian Liberty Alliance doesn't enjoy much support at all in the electorate, and a very good example of that was the last federal election.

SARAH WHYTE: Tom King has been charting the rise and fall of fringe groups like the Australian Liberty Alliance.

TOM KING: They will come and go, that's right, these minor parties, these minor far-right parties, because of failing support and also they'll be seen in many parts as being a little bit irrelevant, or being poorly led.

SARAH WHYTE: Do you see a future in politics?

KIRRALIE SMITH: I really honestly can't say at this stage, I will always commentate on politics. Whether I'm actually in the fray, I'm not sure. I have this very big court case.

SARAH WHYTE: Mohamed El-Mouelhy is also preparing for the court case, saying there is no chance of reconciliation.

So would you meet with Kirralie Smith?

MOHAMED EL-MOUELHY: I will meet her in court.