Victorian MP entitlements 'appalling': Premier Andrews

Victoria's Premier Daniel Andrews has labelled the behaviour of two Labor MPs claiming allowances to live far away from their electorates as 'appalling'.

Don Nardella and Speaker Telmo Languiller both resigned from their posts yesterday after it was revealed they claimed a second residence allowance to live far away from the Melbourne CBD and their electorates.

Mr Andrews said the behaviour was "appalling" and told both MPs yesterday their positions had become untenable, demanding their resignations.

However, Mr Nardella has not yet been asked to pay back the allowance.

“That is a matter I think is best dealt with by the Audit Committee and, again, I am confident both gentlemen will co-operate with the committee," he told reporters in Abbotsford this morning.

Former Speaker Mr Languiller claimed more than $37,000 in second residence allowances while living in Queenscliff on the Bellarine Peninsula instead of his western suburbs electorate of Tarneit for most of last year.

His deputy was also found to have claimed at least $100,000 in allowances for living an hour from his Melton electorate in Ocean Grove, also on the Bellarine, since April 2014.

Only Mr Languiller has committed to repay the allowance.

Mr Andrews said cabinet will start working on reforming the rules from tomorrow.

"I'm not going to waste any time on this, it'll take days, maybe weeks," he said.

"I think it is very clear to me, and I think it's clear to the vast, vast majority of decent Victorians, that second residence allowance is provided for those who represent a regional seat, and if you don't represent a regional seat, you will no longer be eligible to be able to claim that allowance."

Special Minister of State Gavin Jennings has been directed to look at allowances more broadly to see if any other could be claimed in a similar fashion and how other jurisdictions monitor perk claims.