Don Nardella to repay $98,000 'second residence' claim

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Don Nardella to repay $98,000 'second residence' claim

By Josh Gordon and State Political Editor
Updated

Disgraced MP Don Nardella has agreed to repay almost $100,000 that he claimed to live outside his western-suburbs electorate on the Bellarine Peninsula, but still insists he acted within the rules.

For months the Melton MP has been refusing to repay the "second residence" claim he made of more than $98,000, having insisted his primary residence was in a caravan park in Ocean Grove - more than 80 kilometres from his electorate.

But in a dramatic about-face following intense pressure, Fairfax Media can reveal Mr Nardella, who has already lost his position as deputy speaker and moved to the crossbench as a result of the scandal, has struck a deal to repay the money in instalments by the next election.

It is understood Mr Nardella 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.

Former deputy speaker Don Nardella.

Former deputy speaker Don Nardella. Credit: Justin McManus

However, Mr Nardella said he agreed to repay the money only to address "the significantly negative impact and distraction" of the issue on his family and colleagues, maintaining he "always sought and fully accepted advice from the Parliament of Victoria to make sure I was within the administrative guidelines".

"I have taken this decision despite my ardent belief that I followed at all times the regulations as set down by the Parliament," he said in a statement on Friday night.

"The past several weeks have been very stressful and difficult for my family and I now wish to continue focusing on looking after the needs of my constituents and electorate."

Mr Nardella said the "distraction" was taking focus away from "the excellent work and continuing achievements of the Premier and the Labor team both within and outside of the Parliament".

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Former lower house speaker Telmo Languiller.

Former lower house speaker Telmo Languiller.Credit: Stefan Postles

Yet, he said he fully supported the proposed new expense claims regulations for all MPs, "as they will make the system transparent and clearer and remove any ambiguity".

The "second residence" allowance was designed for rural and regional MPs who maintain a second home in Melbourne to attend parliament. But in February Fairfax Media revealed now former lower house speaker Telmo Languiller and Mr Nardella, who was the Deputy Speaker at the time, claimed the allowance by stating that their primary residence was by the beach, outside their city electorates.

The arrangement allowed both men to claim the generous but little-known perk, currently worth $37,678 a year for ministers and senior office holders.

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The revelations triggered what the State Opposition has described as the biggest expense scandal in Victoria's history. While Mr Languiller swiftly agreed to repay nearly $40,000 that he claimed, Mr Nardella had​ until now refused.

The issue came to a head earlier this week when Premier Daniel Andrews threatened to take the extraordinary and potentially unprecedented step of introducing retrospective legislation to force Mr Nardella to repay the more than $98,000 he owed.

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