WHAT PROMPTED THE AUDIT
* Former speaker Telmo Languiller and his former deputy Don Nardella were caught claiming the second residence 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
WHAT HAS THE AUDIT RECOMMENDED
* Create an independent tribunal to determine MP salaries, additional remuneration for office holders, allowances and entitlements
* Require MPs to certify the completeness, accuracy and validity of their allowances and expenditure claims
* Hold annual reviews of payments to members
* Legislate to enforce regulations and compel MPs to refund overpayments
* Review all existing allowances and dump outdated ones
* Tie specific allowances to electorates, not principal places of residence
* Create capped budgets for allowances and pay as reimbursements, rather than regular payments
* Publish base salaries, additional salaries and allowances on the Victorian parliament website and annual report.
