The Rise Up Australia Party wants corporal punishment returned to Victorian schools and the state's abortion laws repealed.
Party leader Daniel Nalliah said parents would be allowed to give children a "loving smack", which along with the return of discipline at school would stop a lot of problems later in life.
"Today we do have a major problem with young people being uncontrollable," he said on Monday.
"We need to look at ways to stop that happening."
He said the party would run about 40 candidates at the November 29 Victorian election, including in all marginal seats.
Mr Nalliah said a deal had been done with the Democratic Labour Party and Australian Christian Party, with their preferences to the major parties being crucial to who will run the state.
"We will determine the next state government," he said.
"This election we hope that we will get at least two or three upper-house seats in parliament and if so ... we could hold the balance of power."
Addressing the party's Victorian campaign launch on Monday, UK climate change sceptic Lord Christopher Monckton said the party would repeal the state's abortion laws.
"It must surely appear strange that a territory which does not allow its children to be smacked does allow its children to be killed," he said.
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