Prime Minister Malcolm Turnbull has promised sweeping changes to the parliamentary entitlements system after an unrepentant Sussan Ley quit his frontbench following a fortnight of public fury over her travel expenses.
Under Mr Turnbull's plan a new independent agency will be established to oversee all federal politicians' "work expenses" and MPs will be required to report their spending every month, instead of twice a year.
The new body – to be modelled on a similar British authority – will monitor and adjudicate on all expense claims.
Entitlement disclosures will also be made public in a new easily searchable format to improve transparency.
Describing the current system as "absolutely antiquated", Mr Turnbull said the government would also continue to implement the recommendations of the David Tune and John Conde report that was ordered in the wake of the Bronwyn Bishop "choppergate scandal" in 2015. Legislation is expected in the coming months.
"Australians are entitled to expect that politicians spend taxpayers' money carefully, ensuring at all times that their work expenditure represents an efficient, effective and ethical use of public resources," Mr Turnbull said.
"As politicians, backbenchers and ministers we should be as careful and as accountable with taxpayers' money as we possibly can be."
Mr Turnbull's announcement came after Ms Ley tendered her resignation following almost two weeks of intense pressure.
But in a written statement she continued to insist she had done nothing wrong.
"I am confident that I have followed the rules, not just regarding entitlements but most importantly the ministerial code of conduct, and I do not object to the material that I have provided being made public," she said.
"The ongoing intense media speculation has made this an incredibly difficult week. However I am conscious that it has also been a difficult week for the government. The ongoing media coverage of politicians' entitlements has been a diversion from the important agenda we all wish to advance at the start of this vital year for our nation and our region."
Ms Ley said while she had attempted to be meticulous with rules and standards she accepted there was community annoyance and anger that needed to be allayed. She said she would wholeheartedly support the reforms.
"The team is always more important than the individual and I look forward to serving both the Liberal Party and the government well into the future," she said.
Ms Ley's move came almost two weeks after it was revealed she purchased an $800,000 investment property on the Gold Coast while on a taxpayer funded trip.
Further examination of Ms Ley's travel showed it was one of several taxpayer-funded trips the minister made to the Queensland holiday capital.
Her use of private charter flights on capital city routes, at a cost of more than $13,000, also raised questions, with Ms Ley later explaining the private flights were necessary because of last minute diary conflicts.
Mr Turnbull said he would announce Ms Ley's permanent replacement next week. In the meantime Cabinet Secretary Arthur Sinodinos will continue to act in the role.
It's not known whether Mr Turnbull will simply replace Ms Ley or take the opportunity for a wider frontbench reshuffle. However hardline conservatives in the Coalition are expected to push for the return to the frontbench of Tony Abbott.
Mr Abbott could not be reached for comment on Friday.
Mr Turnbull not go into the details of the findings of a report into Ms Ley's conduct by top public servant Martin Parkinson. However in her statement Ms Ley said she was happy for the report to be made public.
Acting Opposition Leader Penny Wong pledged Labor's in-principle support for the changes but said Mr Turnbull should have acted against Ms Ley sooner and called for the Parkinson report to be made public.
"Just two weeks into 2017 and Malcolm Turnbull's already lost a minister," she said.
Ms Ley's resignation also came just hours after Fairfax Media raised questions about a $10,000 three-night trip the former minister took to Perth with her husband in March 2015.
Her social media showed Ms Ley met with local MP Steve Irons on the first day of the trip to discuss the re-development of an AFL ground, but her social media then went dark until her return to the east coast.
Her expense report showed Ms Ley and her husband stayed in the seaside suburb of Cottesloe, claiming almost $400 a night, for the duration of the trip. Both flew business class both ways.
Ms Ley has been a prodigious user of charter flights around her own electorate, racking up 120 charter flights at a cost of about $210,000 since 2014. She often flies herself and has previously justified these expenses on the basis she has a big electorate and it's the only way to efficiently serve her constituents.
The new entitlements body will be governed by a board that will include a former MP, a former judicial officer and people with auditing and remuneration experience. Mr Turnbull says he does not believe the new system will be too costly.
