It is understood that Daniel Andrews' parliamentary secretary Colin Brooks is the Premier's preferred choice to replace Mr Languiller as speaker, and that the government is now considering tightening the entitlements system as a result of the latest scandals. Telmo Languiller has agreed to repay about $40,000 he had claimed for living in Queenscliff while representing Tarneit. "It is self-evident that the second residence allowance is meant for regional MPs who must travel to Melbourne for Parliament," Mr Andrews said. Mr Languiller's resignation came in a statement issued on Saturday. "As I have already stated in the press and in the Parliament I accept that my actions do not meet the very high standards that the community expects of its elected representatives," he said. "No matter what difficult personal circumstances I may have been going through, I have to recognise it as an error of judgement and I accept that I should pay the price for that error of judgement.

"I understand that offering to repay the allowance is not enough. For this reason today I contacted the Premier to inform him that I would be resigning as the speaker of the Parliament. I regret that this issue, if not addressed, could damage the position of speaker and the Labor Party that I love." As opposition leader in 2014, Daniel Andrews was outraged at an entitlement scandal surrounding Geoff Shaw. Credit:Darrian Traynor Hours later, Mr Nardella also announced he would stand down, after getting caught claiming about $113,000 from the same allowance to live in the beachside town of Ocean Grove rather than his Melton electorate in the outer suburbs. However, in a statement the MP maintained that he had "acted in accordance with all rules regarding members of Parliament allowances". The resignations come only days before both Labor MPs were about to be the subject of an investigation by Parliament's audit committee that would have examined the critical question of whether Mr Languiller genuinely resided in Queenscliff.

MP for Melton Don Nardella has been kicked out of the Labor caucus Credit:Darrian Traynor In the past 24 hours it is understood that there were considerable doubts about whether Mr Languiller was able to provide sufficient evidence to prove he was entitled to claim the $40,000 - a perk that the Government is now considering tightening to ensure it is used solely by country MPs who work at Spring Street, not for city and suburban MPs to live elsewhere. Caucus will now determine who becomes the new speaker, while it is expected that the audit committee, led by parliamentary president Bruce Atkinson, will look at the latest revelations involving the former speaker and deputy speaker. Late on Saturday, premier Daniel Andrews issued a statement saying the MPs had made "the right decision" to resign and that he had asked the Special Minister of State "to urgently determine what changes are required so what has occurred in these instances does not happen again." Earlier, opposition leader Matthew Guy had called for both Labor MPs to step down over the "epic" rorting of entitlements.

"Andrews Government MPs have been rorting the system to epic proportions," he said. "Daniel Andrews is presiding over a Labor Party full of unapologetic rorters. It's time these MPs paid back this money and resigned. If they don't go, it's up to Daniel Andrews to sack them." Loading The second residence allowance - open to MPs who live more than 80 kilometres from the city and maintain a second residence in Melbourne - is worth $25,120 for backbenchers, or $37,678 for ministers and office holders, including the speaker and deputy speaker. With Richard Willingham