Anna Palmer, the wife of businessman Clive, will run in the Gold Coast seat of Currumbin in the Queensland election.
Ms Palmer will contest the Liberal National Party-held seat on behalf of the businessman's United Australia Party on October 31.
It's understood Labor have been considering targeting the Gold Coast seat, which is held by Laura Gerber by a margin of 2.1 per cent.
The intervention of UAP in the contest could damage Labor's chances, with Ms Palmer's preferences likely to flow to the LNP.
Ms Palmer says she's running in opposition to the Labor government's handling of compassionate exemptions to its COVID-19 border restrictions.
"As a mother, I am appalled with how the current Queensland Labor government is treating families,'' Ms Palmer said in a statement on Friday.
"Premier Annastacia Palaszczuk and chief health officer Dr Jeannette Young have shown no compassion or common sense during this pandemic."
Ms Palmer previously tried to win preselection by Mr Palmer's party for the Gold Coast seat of Gaven in 2014.
She lost to local businessman Adam Marcinkowski.
More recently, she's been embroiled in legal disputes involving the collapse of her husband's nickel refinery in Townsville in 2016.
She was questioned in the Federal Court in March 2019 over two transactions made by her husband's company Mineralogy.
One was a transfer of 130 million Swiss francs to a company owned by her husband in her native Bulgaria and the other was a $40 million transfer to his political party.
Ms Palmer told the court she had no memory of either transaction.
She also denied a comment by her husband in 2017 suggesting she was in control of the couple's finances and he was " just a pawn in her hands".
"I think that was just a throwaway, funny comment. I think he was being humorous," Ms Palmer said.
