The Federal Government has won broad support for its planned shake-up of the parliamentary entitlements system in the wake of Sussan Ley's resignation as health minister, but the Greens say it needs to go further.

Key points: PM announces independent tribunal to monitor parliamentary expenses

PM announces independent tribunal to monitor parliamentary expenses Labor, Greens and Nick Xenophon give support to plan

Labor, Greens and Nick Xenophon give support to plan The head of the UK's Independent Parliamentary Standards Authority says the system will help rebuild trust in politicians

Ms Ley resigned on Friday following questions over numerous expense claims she made for trips to the Gold Coast.

In a bid to limit the fallout, Prime Minister Malcolm Turnbull announced a new independent parliamentary expenses authority would be established to monitor and oversee parliamentary expenses, based on a similar system in the United Kingdom.

Labor has given in principle support to the plan, as has South Australian senator Nick Xenophon who said he was "cautiously optimistic" about the planned changes.

Greens leader Richard Di Natale said the Greens would back the idea, but would push the Government to go even further.

"When we return to Parliament, yes we'll support the creation of this authority — we think it's a positive step," he said.

"But we'll also be insisting through legislation that we establish a national anti-corruption watchdog and that this body sits within that."

Senator Xenophon said any changes needed to be significant.

"The principle is the right one, to have an independent watchdog," he said.

"It's what the UK has done, it's what I proposed in legislation back in 2015, but ultimately MPs feel that their hip pocket nerves will be pinched with significant penalties."

Senator Xenophon said he believed the crossbench would be consulted on proposed changes.

"I'm actually cautiously optimistic. I think Scott Ryan as Special Minister of State will reach out to the crossbench, will be inclusive in these reforms," he said.

"Because I think that he and the Government know that if it's not an inclusive set of reforms, we'll be back in the same place in 12 months' time."

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 40 seconds 1 m 40 s Malcolm Turnbull announces crackdown on parliamentary entitlements

UK system thrives through transparency

The head of the UK's Independent Parliamentary Standards Authority said implementing a similar system in Australia would help rebuild the community's trust in politicians.

The authority's chief executive Marcial Boo told AM the organisation was established after an expenses scandal in the UK.

"I think that the independence we have is absolutely critical and the transparency because we have to uphold our own integrity and the integrity of our processes so that we can over time, build back confidence of the electorate and in our politicians," Mr Boo said.

The latest expenses scandal came to light after it was revealed Ms Ley claimed travel costs to visit the Gold Coast, where she purchased an $800,000 apartment, during a work-related trip to Brisbane.

Ms Ley also claimed expenses for attending a New Year's Eve party in the same city.

Despite her resignation, she has denied any wrongdoing.

Arthur Sinodinos will take on Ms Ley's portfolios until her replacement is announced next week.