"There are a lot of parties out there to specifically oppose Islam and Muslims, yet Muslims don`t have any official representation," he said.
Australia has a number of anti-Islam parties, including one backed by Dutch MP Geert Wilders.
Australia is not short of political parties. From today you can add another to the list: the Australian Muslim Party.
But its chances of winning a senate seat are slim. Even in the parliamentary constituency with the highest proportion of Muslims, just over 20% of people follow the Islamic faith.
"Anyone can set up a political party," ABC`s political analyst Antony Green told me.
"It doesn`t mean you`re going to get elected and it`s far from clear how much community support he (Mr Mohammed) has."
Mr Mohamed, a 34-year-old businessman, also defended launching the party immediately after terror attacks in Paris this week.
"There are going to be a lot of questions raised in the coming days of the events recently, and this is the whole reason we created this party," he told the ABC`s AM program.
"So it is as good a time as any to launch it."
Mr Mohamed condemned the attacks in Paris and said Islam strictly forbade the killing of innocent people.
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But he said his party would never support the invasion of a Muslim country in response to an incident such as the attacks in Paris.
"Let`s look at how well that`s worked in the past. We`ve invaded Afghanistan … we`ve invaded Iraq, and we`re in the mess we`re in right now," he said.
"So would I support something that`s never worked in the past? No."
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