Mr McAllion joined forces with former SNP MSP Campbell Martin in calling for Scotland to leave the UK.
Mr Martin was a regional MSP between 2003 and 2007 but was expelled from the SNP in 2004, sitting from then as an independent.
He said: "We are not interested in an Edinburgh government bribing the rich instead of a London one. We also want to see Scotland breaking with the outdated monarchy and become a republic and oppose membership of Nato and the hosting of nuclear weapons in Scotland."
The campaign launch in Edinburgh will be chaired by former Socialist MSP Colin Fox, whose party supports the wider Yes Scotland pro-independence movement.
The independence referendum is expected to take place in autumn 2014.