An Australian senator has been censured by his colleagues for seeking to blame the victims of last month's mosque shootings and vilify Muslims.

Former right wing political leader Pauline Hanson has won her release from prison with a court ruling in Brisbane today overturning a fraud conviction and three-year jail sentence imposed in August.

Pauline Hanson, who founded Australia’s right-wing One Nation Party, today resigned as its leader saying she needed to concentrate on fighting fraud charges.

A decision by a branch of Prime Minister John Howard’s Liberal Party to do election deals with the anti-Asian One Nation Party could spread nationally, a Government lawmaker warned today.