Gina Rinehart has proposed Australia should offer Elon Musk islands for free to build satellites and launch them into space in a bid to attract investment to northern Queensland.

Australia’s richest woman continued her battle against government regulation and high taxes in a speech delivered at News Corp’s bush summit in Townsville on Thursday.

According to Hancock Prospecting’s transcript of her speech, Rinehart proposed to “close all federal departments that overlap with state departments”, including the climate change, agriculture and industry departments, in order to save the federal budget billions.

The mining magnate, who made a “significant investment” in Musk’s SpaceX company earlier this week reportedly worth $1.4bn, said the trillionaire could be given free land at “sparsely or non-populated islands” near Townsville for SpaceX satellite construction and launches.

The islands marked on the map included Magnetic, Rattlesnake, Acheron, Palm, Orpheus and Pelorus islands.

“Add water and the infrastructure Elon needs. He needs land to expand, and an alternate weather place in an allied country for his multiple satellite launches,” she told the summit, according to the notes.

“Wouldn’t this be fantastic for Australian university student graduates, to be able to have the opportunity to learn near Townsville with world-leading proponents and facilities, instead of having to leave their families and go overseas?

“And satellite launches would definitely add a tourist attraction.”

Rinehart, who spoke after being introduced by Pauline Hanson, also said the land could be provided to skilled Israelis and their families to build “advanced war drones, and or other advances in defence, and or improve upon their Israeli style domes, and manufacture them here to sell to our country to help make our people and critical infrastructure safe”.

Taiwan’s computer chip industries could be attracted by offering them free use of the inland town of Prairie, 340km from Townsville.

“Apparently, we have land out near Prairie designated for toxic, asbestos riddled, bird and bat maiming, bird and bat killing wind towers. What a waste,” Rinehart said, according to the notes.

“Let’s stop this misuse and let the Taiwan computer chip industries know we have free land to offer for their world-leading microchip industry, with tax holiday, an international airport to go to and fro, and a port at Townsville.

“Taxpayers’ saved dollars could go on charter jets and cargo ships to Taiwan, to bring the high skilled staff they chose, and their immediate families to Townsville, plus equipment. And doctors and nurses and their immediate families, for a regional hospital.”

The billionaire patron used her appearance with Hanson at the summit to present the senator with an orange toy bulldozer, asking the audience to imitate the purr of the machine.

“I want some bulldozer noise,” Rinehart said.

“You might remember Elon Musk was given a big chainsaw to try to cut government [red] tape, and bureaucracies over in America.

“We need an orange bulldozer. Let’s hear the noise,” she said, with footage showing her imitating the sound.

Guardian Australia has revealed the depths of Hanson and Rinehart’s close relationship, including the gifting of a new private plane worth more than $1.5m.

Before the gift, Hanson and others including Barnaby Joyce had been flown numerous times in Rinehart’s own private jet.

Last week, the One Nation leader said she considers Rinehart an unofficial policy adviser to her and her party.

“My policy on pensioners being able to work unlimited hours and without losing their pension or healthcare card came from Mrs Rinehart. And I think that’s great. I listen to anyone who brings good policy to me,” Hanson told ABC radio in Perth earlier this month.

“I consider her a friend and I’m very … grateful for her support. She’s an Australian identity, she’s one of the highest taxpayers in the country.”