Victorian Labor technically didn't break "ambiguous" election staffing rules, but MPs likely won't be allowed to do what they did again.
Labor staffers were paid as electorate officers two days a week for months leading into the 2014 election campaign, often working well outside their electorate.
While paid by the taxpayer, the staffers worked for Labor's Community Action Network in marginal seats.
A parliamentary report released on Wednesday said the rules were ambiguous.
"The Members Guide is clear with respect to its principal stance on EOs being prohibited from undertaking party political activity," the report said.
"(But) what constitutes party political activity is not defined in any of the documents reviewed."
That technicality means the party doesn't face censure from the parliament, but Victoria Police are still investigating.
More seriously for Labor, the ombudsman has gone to the Supreme Court to find out if she is allowed to investigate misuse of parliamentary funds.
That case will next appear in court on May 9.
The parliamentary report says lawmakers should consider explicitly banning electorate officers from campaign work.
It also found electorate officers didn't know about the guidelines around their work, and put insufficient details on their timesheets.
The vast majority of those sheets were left blank under the "reason for payment" section.
Premier Daniel Andrews welcomed the report, which was ordered by Speaker Telmo Languiller and upper house president Bruce Atkinson.
"The government stands ready to work with you Mr Speaker ... on any of the recommendations canvassed," Mr Andrews told question time.
Opposition Leader Matthew Guy said the taxpayer money paid to staffers for campaign work added up to more than $1 million.
"The Labor party knew it was acting against the parliamentary guidelines," Mr Guy told reporters.
"Labor should pay the money back."
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