Make Vic MP pay, perks public: audit

Kaitlyn Offer

Victoria's politicians should be forced to refund wrongly paid perks, and their salaries made public and overseen by an independent watchdog after the government's entitlements scandal, a report recommends.

PricewaterhouseCoopers demanded documents from 34 MPs claiming the second residence allowance after former Speaker Telmo Languiller and his deputy Don Nardella were caught claiming cash to live in the country despite being metropolitan MPs.

However, Liberal MP and Member for Benambra Bill Tilley "was unwilling to provide relevant documentation citing privacy reasons", according to the report.

Mr Tilley told AAP on Wednesday night he had provided travel documents, bank statements and electricity bills to the auditors.

But he did not hand over insurance papers because he does not have a claim on his rented Melbourne apartment and his partner pays for insurance on his West Wodonga home of 17 years.

"She's entitled to some privacy, do they need to know what my house and what's in it is worth?" he said.

Mr Tilley said he also could not hand over his car registration "because I don't know where the papers are".

"There's no smoke, there's no fire, and has Don Nardella paid back what he claimed?" Mr Tilley added.

Since 2010, Mr Nardella has claimed $174,836 for having a secondary residence, first living in Ballarat with a partner.

But when that relationship fell apart in 2014, he claimed the allowance but lived in an Ocean Grove caravan park cabin that he rented for $200 a fortnight from a family member because his St Kilda flat wasn't "spacious enough".

He has refused to pay back any of the money and was booted from the parliamentary Labor Party over it.

Mr Languiller has repaid the $37,800 he claimed and remains on leave for health reasons.

The audit makes 12 recommendations to overhaul the governance and transparency of salaries and allowances.

It calls for a review of all existing allowances; legislation to compel MPs to refund overpayments; tying specific allowances to electorates, not primary residences; and creating capped budgets for each entitlement.

The report also recommends an independent tribunal to determine salaries, allowances and extra pay for office holders.

Salaries and allowances should also be published on the Victorian parliament website and in its annual report, it recommends.

"We will closely consider these recommendations as we take steps to reform the entitlement system and will make announcements soon," Special Minister of State Gavin Jennings said in a statement.

Opposition Leader Matthew Guy said the report "confirms that (Premier) Daniel Andrews can and should get the $174,000 of rorted taxpayers money back from Don Nardella".