The party espouses smaller government and supports policies that are based on classical liberal, libertarian principles,[10] such as lower taxes, opposing restrictions on civil liberties, decentralisation, uranium mining, and the relaxation of smoking laws.

[15] In 2006, changes to the Electoral Act by the Howard government forced all parties without parliamentary representation to deregister and re-register under stricter naming rules.

[18] During this period, the party remained registered under its original name in the Australian Capital Territory (ACT).

The paper described the LDP as "a hardline liberal party that demands abolition of government welfare as well as the minimum wage, seatbelts and bike helmets.

[26] Australian Sex Party candidate Fiona Patten alleged Leyonhjelm intentionally failed to lodge ticket voting preferences forms, reneging on a preference deal,[27] but Leyonhjelm claimed that there was a mistake entering the AEC fax number.

Shortly after David Leyonhjelm's Senate victory, Liberal Democrats councillor Clinton Mead was elected Mayor of the City of Campbelltown in New South Wales.

[30] In May 2017, former Leader of the Opposition and political commentator Mark Latham left the Australian Labor Party and joined the LDP.

[35] In 2018, candidates Tim Quilty and David Limbrick were elected to the Victorian Legislative Council (state upper house).

In the same year, Mark Latham left the party to become the leader of One Nation NSW division.

[36] In 2019, David Leyonhjelm announced that he will be quitting federal parliament in order to contest the New South Wales state election.

[6] High Court challenge [ref: https://www.hrlc.org.au/human-rights-case-summaries/high-court-restrictions-on-duplicating-political-party-names-are-constitutional ] by John Ruddick bought on by the Liberal party consequential to legislative changes to prevent 'voter confusion' specifically with the 'Liberal Democrats'.

[41] In July 2021, Campbell Newman, the former Premier of Queensland and Leader of the Liberal National Party of Queensland, resigned from the LNP, stating the LNP candidate in the 2021 Stretton state by-election was "let down by a party and leadership that never stands up for anything".

[42] In August 2021, he announced he had joined the LDP to run as the party's lead Senate candidate in Queensland at the 2022 Australian federal election.

On 16 October 2021, Quilty, Limbrick, and other opposition MPs were ejected from Victorian Parliament for refusing to disclose their vaccination status.

[43][44] After two weeks of exclusion, the MPs submitted their vaccination status on 28 October 2021, in order to return to parliament to oppose the legislative agenda of the government.