Ley resigns, Turnbull announces expenses overhaul

EMBATTLED MP Sussan Ley has resigned as health minister in the wake of her travel expense scandal and received the thanks of Prime Minister Malcolm Turnbull.

Sussan Ley has submitted her resignation to Prime Minister Malcolm Turnbull. Picture: AAP

SUSSAN Ley fell on her sword today, and resigned from federal cabinet, ending a torturous week for the Turnbull government.

But the former health minister insists she followed MPs’ entitlements rules and did not breach ministerial standards.

Changes will be made to the entitlements system as a result of Ms Ley’s travel expenses scandal, with a new agency to be created and requirements for politicians to disclose their expenses monthly.

Sussan Ley has submitted her resignation to Prime Minister Malcolm Turnbull. Picture: AAP

In her resignation letter to Prime Minister Malcolm Turnbull, Ms Ley was adamant she had not broken any rules, saying she was resigning because the affair had become a distraction.

“Whilst I have attempted at all times to be meticulous with rules and standards, I accept community annoyance, even anger, with politicians’ entitlements demands a response and I wholeheartedly support the reforms announced by the Special Minister of State,” she wrote. Ms Ley conceded “intense media speculation has made this an incredibly difficult week”.

Senator Arthur Sinodinos will fill in as acting health minister, with Mr Turnbull set to make an announcement on “ministerial arrangements” next week.

The PM said yesterday Ms Ley told him she intended to resign following an investigation into her use of taxpayer funds. He refused to detail the findings of that investigation, sparked by Ms Ley’s purchase of a Gold Coast property while on a taxpayer-funded trip.

“The minister has come to a judgment about the appropriate course of action and I want to acknowledge that,” he said. “I believe that’s the right judgment.”

Labor slammed Mr Turnbull’s refusal to outline the probe’s findings.

Revelations of Ms Ley’s apartment purchase were quickly followed by others relating to her use of entitlements. Some of her cabinet colleagues were caught in the crossfire as questions were raised about their own handling of the public purse.

Labor MPs and Greens figures also faced scrutiny, including Opposition frontbencher Michelle Rowland, who spent more than $7000 of taxpayer money flying her family, business class, to Perth.

The government plans to create a UK-style independent body to oversee and administer MPs’ expenses.

It would be governed by a board including a former judge, a former MP, the Remuneration Tribunal chief and people with experience in auditing.

Mr Turnbull is also borrowing ideas from the UK when it comes to expense disclosures, with entitlement use to be declared monthly.

“These are work expenses,” he said. “The same principles that apply ... in business ... should apply for politicians.”