Melton MP Don Nardella has agreed to repay almost $100,000 he claimed for living in Ocean Grove.
Despite insisting for months he had done nothing wrong, Mr Nardella issued a statement on Friday saying he agreed to repay the money to address “the significantly negative impact and distraction” of the issue on his family and colleagues.
“I have taken this decision despite my ardent belief that I followed at all time the regulations as set down by the Parliament,” Mr Nardella said in a statement.
“The past several weeks have been very stressful and difficult for my family and I now wish to continue focussing on looking after the needs of my constituents and electorate.”
Fairfax Media reported the former deputy speaker will repay the money by taking a pay cut between now and the November 2018 election, with a further $16,000 to be paid as a lump sum by November 24, 2018.
Mr Nardella’s decision to repay the $98,000 he claimed in second residence allowances while living in Ocean Grove followed a state government announcement that the parliamentary allowances systems would be drastically overhauled.
Premier Daniel Andrews last week promised to get tough on MPs entitlements to restore public confidence in the “badly bruised” Parliament following revelations Mr Nardella and Tarneit MP Telmo Languiller claimed an allowance designed for regional MPs.
Mr Andrews also indicated Parliament would force Mr Nardella to pay back the $98,000 if the Melton MP refused to do so.
“If he does not pay that money back before these bills come into the Parliament in just a couple of months time … the parliament will take that matter out of Mr Nardella’s hands and we will recover that money,” Mr Andrews told a press conference.
Under the proposed changes to the parliamentary allowances system:
•Second residence allowances will only be available for regional MPs representing seats outside an 80-kilometre radius of Melbourne.
•A commercial vehicle travel allowance available to MPs in large regional electorates will be restricted to air-travel only.
•MPs will no longer be allowed to rollover annual travel from one year to the next, and spouses will no longer be funded.
•MPs caught rorting the system will face a 25 per cent penalty on wrongly claimed entitlements.
