After weeks of talks, Warringah MP Zali Steggall and Wentworth MP Allegra Spender on Thursday announced the formation of Community Strong Australia.
"Australia is at a crossroads. Across the country, Australians want something better: a politics that brings people together, tackles long-term challenges with courage and optimism, and gives communities a stronger voice in shaping the future," they said in a statement.
The party's focus issues include creating opportunity and prosperity, safety and security, housing affordability, cost-of-living pressures, climate change, childcare, education, healthcare and social cohesion.
"Australia is at a turning point and people are worried about what the future holds. Community Strong Australia offers unity over division and reason over rage," Ms Steggall said.
The MPs say they will work together to develop policy, but will retain a free vote and prioritise their communities.
The new party is looking to build on the principles of the community independents movement, which they have listed as integrity, accountability, practical problem-solving and putting communities at the centre of decision-making.
Ms Spender said Community Strong Australia responds directly to the feeling among many Australians that politics is dominated by career politicians who don't listen to them.
"Our country's success wasn't built on complaining or fighting each other. It was built on the common good of hard work, tolerance, shared identity and purpose," she said.
Community Strong Australia wanted to counter the political forces that fuel division and push voters towards more extreme choices, the women said.
"At a time when others are promoting conflict and hate, I feel a strong sense of responsibility to provide a real political alternative and promote a positive narrative about what Australia is and what we can achieve together," Ms Steggall said.
Independent MP for Bradfield Nicolette Boele congratulated the pair, saying she expects to work with Community Strong Australia on policy regarding the economy, climate action and integrity.
"For now, I am remaining independent. That is the mandate Bradfield gave me, and any decision to change that belongs to my community, not to a press conference," she said.
"I am still working through what this party would allow me to do for the people I represent that I cannot already do as a community independent — and until I am certain, I will not pretend otherwise."
The new party will engage with communities across the country over coming months and will support community-backed candidates and parliamentarians in both houses of parliament, the MPs said.
They said party registration was required to allow them to run Senate candidates, with an application lodged to register Community Strong Australia as a political party expected to be finalised by October.
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