The party that once pledged to "keep the bastards honest" is seeking registration ahead of the federal election.
The Australian Democrats were deregistered in April 2015 after it was found the centrist party no longer had the required 500 members.
A bid to overturn the decision failed in March 2016, but the party is once again seeking to run federal candidates under its banner.
It was a significant influence in federal parliament from its founding in 1977 to 2008.
National president Elisa Resce told AAP the party had submitted a new application to the Australian Electoral Commission in December.
"We check in with the AEC regularly and, to date, have received no indication that our application is not meeting requirements, and we expect to hear the results soon," she said.
It has taken the unusual step of hiring a recruitment agency and charging would-be candidates $800 each to conduct a "candidate assessment process".
Potential candidates must submit a written application and undergo background checking, an interview and referee checks.
Ms Resce said the potential candidates were told the party's registration is still pending and they would not stand under the party's name if the registration was not formalised in time for the expected May election.
She said it was important candidates were aware of the qualities the party was looking for and understood the rigours of conducting a campaign.
Asked about the $800 fee, she said none of it would go towards the election campaign.
"The $800 does not cover the full cost of the HR firm's fee and the party will be paying the remainder," she said.
"The $800 in its entirety is to be used for this fee-for-service vetting process.
"We are aware this is a unique approach but it is very much in keeping with our commitment to providing candidates who, if elected, will truly honour the social contract between themselves and their electorate, above any vested (ideological or commercial) interests."
Bronwyn Pearson, who runs Pinnacle People Solutions which was hired by the Democrats, said all political parties should consider a similar process.
"Our role is to conduct an independent, robust and objective assessment of individual candidate suitability," she told AAP.
"The Australian Democrats will determine pre-selection following the candidate assessment process."
The AEC is yet to seek public feedback on the party's registration and declined to comment on whether it had received an application from the Australian Democrats.
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