Controversial Australian government allowance closed

A controversial scheme that Australia's Victorian politicians rorted to take taxpayer funds they were not entitled to has been closed.

Daniel Andrews, the premier of Victoria, announced the "sweeping" changes, under which the Members of Parliament (MPs) who had wrongly take the money would be forced to repay the money.

The government came under fire in March when it was revealed that House Speaker Telmo Languiller and his deputy Don Nardella had incorrectly used the second residence allowance intended for MPs who represent electorates in rural areas.

Under the reforms, approved by Andrews' Cabinet on Tuesday, the second residence allowance would be made available exclusively to country MPs while travel allowances would also be tightened.

An independent tribunal will be established to set MPs salaries and rule on what allowances each MP is entitled to.

Languiller has since repaid the money he wrongly took but Nardella, who resigned from the Labor Party but remains in parliament as an independent, has repeatedly refused the opportunity to repay the 130,000 U.S. dollars he claimed.

Andrews said parliament would vote to recover the money if Nardella did not pay him back himself.

"If he does not pay that money back before these bills come into the Parliament in just a couple of months' time, I think all of us on across the Parliament will take that out of Mr Nardella's hands and we will recover that money," Andrews told reporters on Tuesday.

Matthew Guy, leader of the Opposition Liberal Party, said he supported the changes but believed Andrews was too soft on Nardella.

"Daniel Andrews has today given Don Nardella a leave pass, he has allowed him to keep drawing a salary, he's allowing him to remain a Member of Parliament," Guy said.

"Not only should Don Nardella pay the money back, he shouldn't be in Parliament." Endit