Barakah Hills, a "halal cartoon series", has been pitched as a Muslim alternative to the UK pre-school show.
Peppa Pig is a popular children`s animation shown in 180 countries.
Production company One4Kids, which makes children`s shows with Islamic themes, wants to raise A$20,000 (£12,000; $15,000) to begin production on Barakah Hills.
"The show`s main objective is to show children what it is like to be a practising Muslim as well as a good citizen in their community," the company said in a statement.
The Sydney-based company produces a range of cartoons which focus on prayer, stories of prophets, Ramadan and learning Arabic.
ANIC head Sheik Shady Alsuleiman urged people to donate to One4Kids in a video posted on its Facebook page.
"These days, in this modern age, our children have been embedded and very well occupied watching different cartoons on TV and it`s our responsibility not to stop them from watching but give them another alternative," he said in the video.
One4Kids producer Subhi Alshaik told the BBC he enjoyed Peppa Pig but that "apparently there are messages in there that turn kids into brats".
"I`m a fan of Peppa Pig like many people are... Muslim, non-Muslim, pig haters, pig lovers," he said.
"We thought, maybe we should produce an alternative that is about everyday life. Why not have a show that is similar to Peppa Pig?"
According to government statistics, 2.2% of Australians list their religion as Islam, compared to 61.1% who identify as Christian.
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