"I don't oppose Islam as a country," Banister said in a now-viral video with Australia's 7 News. "But I do feel that their laws should not be welcome here in Australia."
''Jews aren't under haram, they have their own religion which follows Jesus Christ,'' she also said. ''They don't have a tax on [kosher], they've just got a certain way of making it where haram has a tax on the food.''
''I believe that the disability scheme is working at the moment,'' Banister said of the country's National Disability Scheme, a federal program that doesn't start until 2016.
Banister's less-than-stellar interview skills have drawn comparison to Sarah Palin, the former U.S. vice presidential candidate who famously stuffed up a 2008 interview with Katie Couric.
Banister pulled out of the the race for a Brisbane seat after the gaffes earned her the nickname, "Australian Sarah Palin."
"Stephanie Banister has withdrawn her nomination to stand following the disgraceful way she has been portrayed by recent media [and] ridicule over a minor gaffe in a statement she made to Channel Seven," One Nation party leader Jim Savage said in a statement Saturday.
Banister is also facing criminal charges for pasting stickers that said 'halal food funds terrorism'' on products at a Brisbane grocery store.
Banister said later that the network had misrepresented her statements.
"Unfortunately, they've completely twisted all my words and made me out to be a stand-up criminal and a stupid moron," she said.