Call to overhaul Vic MPs' perks

WHAT PROMPTED THE AUDIT

* Former speaker Telmo Languiller and his former deputy Don Nardella were caught claiming the second residence allowance in February

* Both said they lived on the Bellarine Peninsula, despite representing electorates in outer Melbourne suburbs

WHAT IS THE SECOND RESIDENCE ALLOWANCE

* It's designed to help country MPs based more than 80km from Melbourne maintain a second home in the city for when parliament sits

WHAT HAS THE AUDIT RECOMMENDED

* Create an independent tribunal to determine MP salaries, additional remuneration for office holders, allowances and entitlements

* Require MPs to certify the completeness, accuracy and validity of their allowances and expenditure claims

* Hold annual reviews of payments to members

* Legislate to enforce regulations and compel MPs to refund overpayments

* Review all existing allowances and dump outdated ones

* Tie specific allowances to electorates, not principal places of residence

* Create capped budgets for allowances and pay as reimbursements, rather than regular payments

* Publish base salaries, additional salaries and allowances on the Victorian parliament website and annual report.