Two Labor MPs at the centre of a police investigation into parliamentary expenses should be excluded from voting when parliament resumes, Opposition Leader Matthew Guy says.
Police on Wednesday confirmed they are are moving forward with a formal investigation into former Speaker Telmo Languiller and former Deputy Speaker Don Nardella.
Both resigned from their posts in February after it was revealed they claimed a second residence allowance to live far away from the Melbourne CBD and their electorates.
Shadow attorney-general John Pesutto wrote to Chief Commissioner Graham Ashton in March, calling for an investigation.
"Both matters that were referred to Victoria Police in March have been assessed and have now progressed to the investigation stage," a police spokeswoman said on Wednesday.
"As the investigations are ongoing, we will not be commenting further."
A government spokeswoman said it would not be appropriate to comment and that the matter was one for police.
Opposition Leader Matthew Guy said the two members' votes should not be "caucused and accepted by the government".
"These members have been rorting these allowances and that's been very clear," he told reporters in Melbourne on Wednesday.
"Those matters now need to be resolved by the police and until then, this government will be paralysed, a shambles."
An audit by accounting firm Pricewaterhouse Coopers in March found gaping holes in the rules that allowed the two Labor MPs, who have Melbourne electorates, to claim the perks.
The audit found Mr Nardella had been claiming the allowance since 2010, first for living in country Ballarat and later in seaside Ocean Grove after a relationship breakdown.
Mr Nardella initially quit the Labor Party rather than agree to Premier Daniel Andrews' demand to pay back the $98,000 relating to the Ocean Grove claims.
But the member for Melton, who remains on the crossbenches, has since agreed to a payment plan that includes regular deductions and a $16,000 lump sum.
President of the Legislative Council Bruce Atkinson said police had sought information from the parliament about the work of the audit committee.
Mr Languiller, the member for Tarneit in western Melbourne, claimed the allowance when he moved to Queenscliff in 2016, also after a breakdown in his relationship.
He repaid the $38,000 in full in March shortly after the scandal broke.
