WHAT PROMPTED THE AUDIT
* Former speaker Telmo Languiller and his former deputy Don Nardella were caught claiming the allowance in February
* Both said they lived on the Bellarine Peninsula, despite representing electorates in outer Melbourne suburbs
WHAT IS THE SECOND RESIDENCE ALLOWANCE
* It's designed to help country MPs based more than 80km from Melbourne maintain a second home in the city for when parliament sits
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WHAT WAS AUDITED
* The claims by Mr Nardella and Mr Languiller
* The current processes to claim the allowances and what improvements can be made
NARDELLA'S AUDIT
Total claim: $174,836
* Claimed the allowance between March 2010 and April 2014 for a home he shared with a partner in Ballarat. Claim totalled $76,582
* Continued to claim the allowance from April 2014 to February 2017 after break up, saying he lives in Ocean Grove. Claim totalled $98,254
* Told auditors he lived in a caravan park because a St Kilda apartment he owned at the time "was not spacious enough"
* Rented a place at the caravan park for $200 a fortnight off family, did not pay bills, did not provide auditors with tax returns
* Deemed by auditors "arguable opportunistic...to ensure continued enjoyment of the second residence allowance"
LANGUILLER'S AUDIT
Total claim: $37,834
* Claimed the allowance from November 2015 to February 2017 for a home in Queenscliff
* Audit found he intended to live at Queenscliff and changed driver licence and electoral roll details
* Family circumstance meant he spent most of his time in Melbourne
* Repaid the allowance in full in March
WEAKNESS FOUND IN THE CURRENT PROCESS
* There's a lack of definition of what constitutes a principal place of residence
* No documentation is kept by clerks to confirm claim validity
* No documentation required to prove notification of a home base
RECOMMENDATIONS
* Second residence allowance be based on electorate location, not MP's home location
* Get rid of all allowances and replace them with a reimbursement scheme
