Sweeping changes to Vic parly allowances

OVERHAUL OF VICTORIAN PARLIAMENTARY ALLOWANCES:

* Second Residence Allowance only for MPs who represent regional seats outside the 80km radius of Melbourne

* New legislation to allow for recovery of rorted sums including 25 per cent penalty for non compliance

* Independent Remuneration Tribunal to set salaries and allowances for MPs and public servants

* Spouse travel no longer covered

* $10,000 for interstate and overseas travel for official business can no longer be rolled over to the next year if unused

* Private transport options for MPs in large regional electorates restricted to air travel only

* MPs' travel allowances consolidated from four types to a single allowance.

* Additional scrutiny of MPs travel claims go beyond 68 nights a year to reflect parliamentary sitting days

* All allowances to be published on parliament's website every quarter

* Parliamentary Integrity Adviser will coach MPs on how to use entitlements properly and provide an annual report.