AUSTRALIA'S best known neo-Nazi, Ross "The Skull" May, has claimed that right wing politician Pauline Hanson supports a white Australia and shares his extremist views.

May, who has met Hanson on several occasions and claims she "likes a cuddle" says "Pauline is a bloody good friend" and he will be "supporting her the best I can" in her bid to be re-elected to Federal Parliament in September.

Ms Hanson, who was previously embroiled in a scandal over connections between her former party, One Nation, and the white supremacist group, the Ku Klux Klan, agrees she knows May but says she does not support his racist opinions.

"I know he's a big supporter of the white Australia policy (but) that doesn't mean I support it. I don't," she told news.com.au. "People have claimed to be associated with me. These people cling to you."

The Skull, who says he is proud to be a neo-Nazi in 2013, is the now defunct Australian National Socialist Party's most notorious member.

In the 1970s he was a fit, shaven-headed "stormtrooper" dressed in Nazi uniform, who threatened and assaulted opponents, for which he served several stints in jail.

He was jailed for throwing eggs at feminist Germaine Greer, fined $400 for writing "Kill all Jews" on a Brisbane Jewish memorial, and campaigned against Gough Whitlam in 1974, while dressed in Nazi regalia.

These days, he lives in Sydney's west, wears a Pauline Hanson t-shirt and posts his extremist views on a Facebook page which has a photograph of himself with Hanson as its main picture.

Now a supporter of the ultra right Australia First Party, May's radical ideas include blowing refugee boats "out of the water".

While Ms Hanson distanced herself from May, she said refugees were a problem for ordinary Australians.

"We are looking after refugees' health care and housing, cigarettes and international phone calls," she said. "Australians are hurting as far as job security goes, as far as keeping on paying their bills."

She said Prime Minister Julia Gillard's government was "putting the country further into debt" and "the refugee question has to be addressed".

Ms Hanson will announce next month which lower house seat she plans to stand for as an independent in the federal election.

She said it would be between the seats of Blair, Wright and Oxley in Queensland and Hunter in NSW.

Ms Hanson formerly held the seat of Oxley as an independent, and then as the leader of the One Nation Party, before losing it in 1998.

In 1999, after David Palmer, the "Imperial Wizard of the Ku Klux Klan in Australia", claimed he had infiltrated the party, Hanson was forced to expel party member, Robert Leys, who claimed he was a Grand Titan of the so-called Australian Knights of the Ku Klux Klan, and Peter Coleman, the alleged Australian organiser of the Imperial Klans of America.