A sweeping overhaul of all Victorian MPs' entitlements will be rushed through state cabinet on Monday following the resignation of the city-based speaker and deputy speaker after claiming cash for living on the Bellarine Peninsula.
Premier Daniel Andrews spoke to speaker Telmo Languiller and his deputy, Don Nardella, and made it clear their positions were "untenable", after Fairfax Media revealed that the pair had claimed tens of thousands of dollars to live away from their western suburbs electorates.
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Premier Andrews to tighten MP entitlements
Tightening of MP entitlements will be rushed through state cabinet on Monday after the city-based speaker and deputy speaker resigned after claiming cash for living on the Bellarine Peninsula.
The revelations have created a fresh mess for the Premier, with caucus members despondent over the latest distraction from the government's agenda.
On Sunday, Mr Andrews did not hold back, describing the behaviour of Mr Languiller and Mr Nardella as "appalling".
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"Is it any wonder that there is a cynicism, that there is a scepticism, that there is a distrust of so many members of parliament when we see ... appalling behaviour just like this," Mr Andrews said.
"I'll have no part of it and I am going to make important changes to ensure that what has occurred here can never occur again."
Mr Andrews has charged special minister of state Gavin Jennings with fixing the entitlements, including ensuring only MPs that represent regional and rural communities can claim the second residence allowance.
But the Premier has signalled that all the entitlements open to state MPs will be examined, to make the rules about what is an appropriate expense "black and white".
"No room for interpretation, no room for what has occurred here to ever occur again. I think that is what the Victorian community demands of all of us and that's what I will deliver as the premier of our state."
Mr Andrews did not rule out publishing a list of which MPs were claiming entitlements.
The swift changes come just a month after Mr Andrews dismissed calls for Victoria to follow Canberra's lead over the reporting of MP entitlements – Opposition Leader Matthew Guy has been pushing reform for several months.
The Opposition is considering all options including referring the scandal to police or the Ombudsman. Mr Guy said the first step must be for the Premier to force Mr Nardella to pay back the money or there will be no co-operation in Parliament from the Coalition.
"This issue will not go away until this money is repaid," Mr Guy said.
"Daniel Andrews must make him pay that back. If he doesn't, Daniel Andrews is then complicit in this rorting [by] Don Nardella. It is simple as that.
"It has been Labor MPs that have been systematically rorting the system for years. It was a Labor MP who chauffeured his dogs in a government car. It has been Labor MPs who have been rorting the electorate office allowance."
The Premier, he said, had been dragged "kicking and screaming to make changes" and sack his MPs.
"For Daniel Andrews now to get a Labor MP to audit this system in Gavin Jennings beggars belief."
The looming overhaul follows revelations by Fairfax Media that Mr Languiller, who represents the western suburbs seat of Tarneit, claimed almost $40,000. Mr Nardella, who represents the neighbouring electorate of Melton, claimed almost $113,000.
Unlike Mr Languiller, who promptly promised to repay the money, Mr Nardella, who has claimed the allowance since moving to Ocean Grove in April 2014, is refusing.
Asked if Mr Nardella, should repay the money, Mr Andrews said: "That is a fair question. The most important thing though I think is to let the audit committee deal with these matters and I have confidence that both gentlemen will co-operate."
The committee, led by upper house president Bruce Atkinson, will undertake what Mr Andrews said would be a "forensic examination". That will include a close examination of Mr Languiller's vehicle log books to determine the extent to which he resided in Queenscliff.
It is highly unlikely that the pair will be removed from parliament and trigger expensive byelections.
It is widely expected Mr Nardella will not contest the next election, having been in Parliament since 1992.
Mr Languiller's future is a little less clear.
Colin Brooks, who is parliamentary secretary to the Premier, is the frontrunner to replace Mr Languiller in the lucrative and decorated position of speaker.
But Mr Brooks still holds ambitions to be a minister, something it is understood to have been made clear when accepting the approach for the job.
He is understood to be the preferred choice of Mr Andrews, which has some operatives worried, given the speaker is meant to be independent of government.
His appointment would keep the factional carve-up in place as he hails from the same right grouping as Mr Languiller that is centred around former senator Stephen Conroy.
Mr Languiller and Mr Nardella have both been contacted for comment.