Coalition frontbencher Tim Wilson has walked back his apparent support for a union in government with One Nation, after the party’s historic byelection win on Saturday.

It came as One Nation leader Pauline Hanson said she would work with the Liberals and Nationals to form a government but wasn’t interested in a formal coalition.

“I will give them supply and confidence … they can form a government with my numbers, I’m quite happy to do that,” she told Sydney radio station 2GB on Monday.

“I don’t want ministerial positions, because I’m not going to be the tail on the dog … because [the Liberals] have done that with the National Party.”

One Nation candidate David Farley scored a thumping byelection victory in the southern NSW seat of Farrer on Saturday.

His win over community independent Michelle Milthorpe snapped 77 years of Coalition rule in the electorate and marked the first time his party has won a federal lower house seat.

The victory has raised the prospect of One Nation taking other regional seats and targeting outer suburban electorates, which could force the already embattled Coalition to seek Hanson’s support.

On Sunday, Wilson wouldn’t rule out a possible coalition with One Nation.

“Of course, we traditionally form a coalition with the National party but it’s up to the Australian people to decide who they want to vote for,” Wilson told the ABC’s Insiders program on Sunday.

But by Monday, Wilson, the shadow treasurer, said he had never supported the idea.

“I have never, ever, ever, and never, ever, ever will make such a statement in favour of such an alignment,” he said.

“The reality is, the leader of that party has already declared that she won’t form a coalition with us, and I have no interest in forming a coalition with them.”

Hanson said she felt vindicated by the Farrer result.

“I’ve been pillaged and ridiculed and put down, and you know, everything thrown at me,” she said.

The Liberal primary vote tanked to 12.4 per cent on Saturday, more than 30 percentage points down on the share secured a year earlier by Sussan Ley before her ousting as party leader and subsequent resignation.

But deputy Liberal leader Jane Hume described a possible union with One Nation as a “massive hypothetical”.

One Nation MP Barnaby Joyce said the party was looking to replicate its success in western Sydney and was already speaking to potential candidates.

“What they’ve seen is that the polling is not an aberration,” he told Seven’s Sunrise program.

“It’s now been validated by both South Australia and Farrer. There is a strong following out there.”

He echoed Hanson’s view of a formal alliance with the Liberals or Nationals.

“We’ll offer supply and confidence on policy outcomes … and that is not a coalition. We don’t want your ministries, keep your ministries and your salaries,” Joyce told the Nine Network.

Joyce, a former Nationals leader and deputy prime minister, said his One Nation colleagues wouldn’t want to be “constricted by cabinet solidarity”.

Prime Minister Anthony Albanese said the Coalition’s loss in Farrer was not surprising.

“It’s pretty clear that the traditional Coalition parties, the Liberal Party and the National Party, don’t really stand for anything anymore,” he told Cairns radio station 4CA.

“I’m not sure that One Nation’s appeal will go beyond the sort of seat that we’ve seen and where they traditionally have done OK.”

But former Labor strategist turned leading pollster Kos Samaras said the result in Farrer could be replicated in certain outer-suburban seats, not just regional ones.

“Seats like Lindsay [in Sydney’s west], I could see that seat could definitely become an interesting contest,” the RedBridge director said.

“Every regional electorate that the Nats and the Liberal party hold is on the block.”

-with AAP