Health Minister Sussan Ley resigns over travel expense scandal
Updated
Health Minister Sussan Ley has resigned from the frontbench amid an ongoing expenses scandal, despite earlier claims she had not broken any rules.
Prime Minister Malcolm Turnbull said Ms Ley's replacements would be announced next week.
Mr Turnbull said that Arthur Sinodinos would stay on as Acting Health Minister until then.
"Australians are entitled to expect that politicians spend taxpayers' money carefully, ensuring at all times that their work expenditure represents an efficient, effective and ethical use of public resources," he said.
"We should be, as politicians, backbenchers and ministers, we should be as careful and as accountable with taxpayers' money as we possibly can be."
Mr Turnbull also announced that a new body overseeing parliamentary expenses would be created.
"The Government believes that the work expenses of parliamentarians, including ministers, should be administered and overseen by an independent agency," he said.
"An independent parliamentary expenses authority will be a compliance, reporting and transparency body. It will monitor and adjudicate all claims by MPs, senators and ministers, ensuring that taxpayers' funds are spent appropriately and in compliance with the rules."
Ms Ley stepped aside from Cabinet on Monday, amid two investigations into her travel expenses, which included billing taxpayers to attend two New Year's Eve events hosted by a prominent Queensland businesswoman and donor.
Ms Ley was also criticised for purchasing a $795,000 luxury apartment on the Gold Coast while on a taxpayer funded trip, claiming it was an impulse purchase.
But a retired couple on the Gold Coast Hinterland claim Ms Ley made an unsuccessful bid on her house nine months before she purchased the apartment.
I accept community annoyance, even anger: Ley
In a statement, Ms Ley said she was confident she had followed the rules, "not just regarding entitlements but most importantly the ministerial code of conduct".
"The ongoing intense media speculation has made this an incredibly difficult week," she said.
"However I am conscious that it has also been a difficult week for the Government. The ongoing media coverage of politicians' entitlements has been a diversion from the important agenda we all wish to advance at the start of this vital year for our nation and our region.
"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."
Ms Ley told reporters on Monday that she was confident the investigations would demonstrate she had not broken any rules, but admitted she may have failed the political "pub test".
Ms Ley was promoted to Cabinet in 2014, 13 years after winning a by-election by 206 votes.
She took over the health portfolio from Peter Dutton and until today was one of five women in Cabinet.
More to come.