Melton MP Don Nardella told Parliament auditors that he lived in an Ocean Grove caravan park instead of his second residence in St Kilda because the latter was “not spacious enough”.
Auditors PricewaterhouseCoopers (PwC), investigating the expenses scandal in which Mr Nardella claimed almost $175,000 for a second residence allowance which is meant for country MPs, found the former deputy speaker failed to show banking and health insurance correspondence, or provide tax returns, a postal address and utility bills as evidence he lived in Ocean Grove.
However, he did provide a driver’s licence, vehicle registration, electoral roll record and receipts for capital works.
The auditors noted that the evidence provided only “partially” supported Mr Nardella’s claims that Ocean Grove was his principal place of residence.
“The member advised that there was no separately metered electricity at the caravan park so it is difficult to demonstrate ‘normal’ use supporting an assertion that the caravan park was the principal place of residence. The member advised that utility costs were incorporated into the fortnightly payment.”
Mr Nardella started claiming a second residence allowance in 2010 while living in the Ballarat suburb of Lake Wendouree. The total of his second residence allowance claims are $174,836.
Following a relationship breakdown in 2014, Mr Nardella entered in an “informal” arrangement with family members to live at the Ocean Grove caravan park, where he would make fortnightly payments of $200.
The auditors described the arrangement as “non-prudent, non-arm’s length, potentially non-commercial (low “rent”), and arguably opportunistic, designed to ensure continued enjoyment of the second residence allowance”.
“The member already had a second residence in Melbourne so that, at the time, a simpler option might have been to relocate to the second residence in Melbourne or his Melton constituency,” the auditor’s report stated.
“The member stated that the accommodation in St Kilda (second residence at the time) was not spacious enough.
“Viewed from the perspective of an average person on the street, and objective observer, a position could be taken that the arrangement in this period with the member’s close family may have been entered into to ensure that the member would continue to receive the second residence allowance.”
As part of the review into second residence allowances the auditors have recommended that all allowances be scrapped, with MPs instead being reimbursed for business-related expenditure.
The auditors identified several flaws with the current processes of second residence allowances, including:
- A lack of deifnition of what constitutes a principal place of residence,
- No documentation is required to be provided by MPs to support the notification of home base.
- Use of home base or second residence notification forms are not mandatory, and
- The lack of process for MPs to notify the clerk of Parliament of home base/second residence at the start of each Parliament.
Mr Nardella has so far refused to pay back the money and has since moved out of the Ocean Grove residence.
