When Senator Fatima Payman quit Labor over Gaza, she not only delivered a blow to the government, she also got under Anthony Albanese’s skin.

So he’s refused to give the now crossbencher as many staff as, for example, fellow independent senator David Pocock, from the ACT.

With Payman readying to unveil her own political party this week, Albanese on Monday told the Australian Financial Review she should “test democratic support for her actions by contesting the next election herself” under her party’s banner.

Payman, from Western Australia, who doesn’t have to face the voters until the election after next, had a quick reposte.

“I will be testing the support for my actions by running a political party in the next election,” she said.

“My reputation will be on the line. This new party will be tested not just in Western Australia but across the nation.

"We are looking at running candidates in marginal seats. If the PM really wants to arm wrestle, we may even run a candidate in Grayndler [Albanese’s seat].

"This will be a full body contact competition.”

The plan for Payman’s party is to contest the Senate in every state. The candidates in marginal seats would not be fielded with the expectation of winning any lower house spots but to improve the party’s bargaining position in relation to possible deals for Senate votes.

Her strategist and chief of staff is so-called “preference whisperer” Glenn Druery, who long worked the system by negotiating arrangements at federal and state levels to maximise the chances of micro-parties being elected.

The Turnbull government passed changes to the electoral arrangements to try to foil such shenanigans.

But it is still possible for a fluke win in the Senate, where the crossbench matters. This happened with United Australia Party’s Ralph Babit, who secured a Victorian senate spot in 2022, although the UAP polled only 4% of the vote.

Payman again stressed she was not forming a “Muslim” party, but would campaign on issues across the board. Gaza and the Middle East would be only part of her platform, under “foreign affairs”.

ABC analyst Antony Green discounted the Payman party’s chances, saying after the electoral changes the only preference deals that matter involve the major parties and the Greens.

Muslim political advocacy groups Muslim Votes Matter and The Muslim Vote have recently been set up. They are not planning to run candidates, but aim to support candidates who reflect their values and priorities.

Payman said that in seeking candidates, her party would be taking an inclusive approach.

The testy exchange between Albanese and Payman came on the one year anniversary of the Hamas attacks on Israelis, as the Middle East war continues to widen.

In a separate statement Payman said: “As an Australian, as a Muslim, and as a humanitarian, the bloodshed of any human being is against the core principles of my identity.

"Today is a powerful reminder why we need to renew our commitment to standing for justice and upholding human rights for all.

"Nothing justifies the killing of civilians. Nothing justifies the slaughter of of 20,000 children. Nothing justifies apartheid. Nothing justifies occupation.

"My thoughts and prayers go out to all who are suffering the loss of loved ones and grieving the genocide.”

Albanese said in a statement that on the anniversary “we pause to reflect on the horrific terrorist atrocity that reverberated around the globe.

"October 7 is a day that carries terrible pain. Over 1,200 innocent Israelis died: the largest loss of Jewish life on any single day since the Holocaust.

"We unequivocally condemn Hamas’ actions on that day.

"Innocent lives taken at a music festival. Women, men and children killed in their homes. Brutality that was inflicted with cold calculation,” Albanese said.

“We also think of the hostages whose lives remain suspended in the fear and isolation of captivity. For their loved ones, this past year must have felt like an eternity - the agony of waiting and not knowing, or of having the terrible truth confirmed.”

The prime minister said that since the atrocities, “Jewish Australians have felt the cold shadows of antisemitism reaching into the present day – and as a nation we say never again.

"We unequivocally condemn all prejudice and hatred. There is no place in Australia for discrimination against people of any faith.

"As we mourn and reflect, we also re-affirm a fundamental principle of our shared humanity: every innocent life matters.

"We recognise the distress the conflict has caused here in Australia.”

Albanese said “the number of civilians who have lost their lives is a devastating tragedy”.