The 43-year-old male driver was detained by civilians, Mason said, and then arrested by police, who found a knife in his car.
Australian independent lawmaker Helen Haines was deliberately struck by a car and suffered "critical injuries" on Monday in what Prime Minister Anthony Albanese described as an attack.
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Haines was hurt outside her office in Wangaratta, just over 200 kilometres northwest of Melbourne, police said.
The 65-year-old "suffered what has been described as critical injuries", Victoria Police Acting Superintendent Ashley Mason said, without identifying the victim in line with police custom in Australia.
The 43-year-old male driver was detained by civilians, Mason said, and then arrested by police, who found a knife in his car.
"This wasn't an accident. There was a deliberate act," Albanese told national broadcaster ABC.
He also told journalists: "All of our thoughts are with Helen, her family, her friends, her team, and her community at this extremely difficult time. We are praying for her full recovery."
The alleged attacker's motive remained unknown, Albanese said, with Australia's counter-terrorism squad activated.
The Australian Federal Police has documented a steady rise in threats and abuse directed towards the nation's politicians in recent years.
They established a dedicated team last year to investigate groups and individuals targeting lawmakers.
Albanese said on Monday that "the temperature has increased in recent times".
"I've expressed that concern to people in the media," he said.
"If you look at anyone's social media feeds and look at the comments, people will say things that they would never say face to face."
'Thoroughly decent'
Haines entered parliament in 2019 after working as a nurse and midwife, becoming known for stances such as supporting stronger climate action.
She was widely praised for her efforts to increase transparency in politics and crack down on corruption.
"This afternoon, our beloved Helen was involved in an incident outside her Wangaratta Electorate Office, and is receiving medical care," her family said in a statement.
"We thank the swift assistance of bystanders and the dedicated health workers who assisted her, and police for their response."
"Our family, and Helen's staff, will be making no further comment at this time, and ask that their privacy be respected by the public and media," the statement said.
Albanese said Haines was "incredibly hardworking".
"She is fiercely intelligent but, most importantly, she's just a thoroughly decent human being," he said.