Independent Senator Nick Xenophon says he plans to push through new laws to force the proper labelling of palm oil once Federal Parliament resumes after the Sept 7 general elections.

He claimed palm oil is used in 40 per cent of all food products yet its growing production in Southeast Asia is threatening the native habitat of the orang-utan.

He introduced similar labelling legislation in 2009 and while it passed the Senate it failed to get to a vote in the House of Representatives after strong opposition from the Malaysian Government.

"I am determined to re-introduce this bill straight after the election no matter which party is in power," Xenophon said in a statement on Friday.

"I want to make sure this is pushed through, because it's too important to let go."

Xenophon alleged each year hundreds of orang-utans die in Borneo and Sumatra because of land clearing for palm oil plantations.

The equivalent of about 300 football fields of forest are cleared every day. He said part of the problem is the various names by which palm oil is referred to, which prevents consumers from making an informed choice not to buy products containing it.

The Australian Associated Press said Xenophon's campaign has drawn the support of Orang-utan Foundation International with Australian ambassador and leading neurosurgeon Charlie Teo saying the destruction of the rainforest could result in the orang-utan becoming extinct in the wild within the next few years.

"I think Australian consumers would feel very strongly if they knew that they were contributing to the devastation of this beautiful creature as well as the rainforest," Dr Teo said.

"They would want truth in labelling."

Dr Teo said there is also a health issue for consumers with palm oil being high in saturated fat.