Commissioner Mick Sherry's comments come days after Prime Minister Anthony Albanese said he'd consider the model already in place in the southern state.
Mr Sherry said complaints had skyrocketed in March's South Australian election to the point he spent the vast majority of his time dealing with truth-in-advertising matters.
In South Australia, anyone who authorises, causes or permits the publication of an electoral advertisement is guilty of an offence if the advertisement contains a statement "purporting to be a statement of fact that is inaccurate and misleading to a material extent".
It covers television, radio, corflute boards and social media but not political discussions, speeches, interviews and newspaper articles.
Mr Sherry told a parliamentary inquiry examining May's federal election the commissioner's role inevitably saw him drawn into the political debate and could lead to some questioning his independence.
"I will, of course, write to the complainant advising I've made that decision … quite often what happens within half an hour of me sending that letter, the complainant is in front of the media holding up my letter to say 'look at my opponent, he's a liar, she's a liar, how can you trust that person?'" he said.
"We are drawn into that and that places me and the commission in a difficult situation."
Mr Sherry said March's state election drew 122 complaints about misleading advertising, up from 38 complaints at the 2018 count.
He said the state's "quite powerful" laws meant only he could be responsible for making decisions about misleading advertising.
"Running an election you're responsible for the conduct of so many different parts.
"I'm drawn away from the many other parts of the election to focus on this piece … I find that quite challenging."
Mr Albanese told parliament on Tuesday the South Australian model was worth examining for federal elections.
"Our democracy is precious and it is important that in the referendum, in particular, but all elections and all deliberations in which the Australian people have a say, that there be truth in what is put forward," he said.
