Malcolm Turnbull has flagged an overhaul of politician's entitlements indicating they will more resemble business expenses.
"We should get rid of that word entitlements," the prime minister told Neil Mitchell on 3AW radio on Friday.
"It's got to look more like the way business treats its expenses for its executives."
Mr Turnbull blamed the system's apparent generosity on a reluctance by MPs of many years past to give themselves a salary increase.
Instead they compensated themselves by having more generous fringe benefits and "perks" such as gold travel passes.
"It is much, much better to have a completely transparent system where your pay is set by an independent remuneration tribunal and that everything is completely above aboard."
Mr Turnbull's comments follow a decision by the High Court this week to reject of a challenge by four retired MPs to a decision by the Abbott government to reduce post-parliamentary entitlements.
