Victoria’s parliamentary Speaker and Deputy Speaker have resigned their posts after they were found to have claimed a controversial allowance designed to support country MPs.

The Speaker of the Victorian Parliament, Telmo Languiller, resigned on Saturday, acknowledging his “error of judgement” in claiming a second residence allowance while living outside his electorate.

Mr Languiller had promised to repay $37,678 he claimed under the allowance for living in Queenscliff, more than 80 kilometres from Melbourne, rather than in his electorate of Tarneit, in Melbourne’s west.

Don Nardella

Then on Saturday evening, Deputy Speaker Don Nardella also fell on his sword after facing similar questions about his second residence allowance.

It was found that Mr Nardella claimed about $100,000 in allowances for living an hour away from his electorate in Ocean Grove on the Bellarine Peninsula since April 2014.

Mr Languiller, a Labor MP, told Parliament he moved to Queenscliff for complex personal reasons.

Under parliamentary rules, politicians are entitled to the “second residence” allowance if their home base is at least 80km from Melbourne’s CBD and they keep a second property in the city.

In a statement, Mr Languiller said he recognised that offering to repay the money was not enough and that he accepted he should “pay for that error of judgement”.

“For this reason I contacted the Premier to inform him that I would be resigning as Speaker of the Parliament,” he said.

I regret that this issue, if not addressed, could damage the position of Speaker of the Parliament.”

Mr Languiller thanked all of his colleagues for the support he had been given.

“The Premier has provided me with much support over the last two years as I faced very difficult family challenges,” he said.

“I reiterate my regret at the actions I have taken and hope that as a backbencher in the Andrews Labor Government I can rebuild trust by serving my electorate of Tarneit and my community.”

Mr Languiller’s resignation came after Opposition leader Matthew Guy called for his sacking.

The quiet coastal town of Queencliff is about 80 kilometres south of Melbourne.

Mr Nardella, who represents the seat of Melton, in Melbourne’s north-west, has been living over 90 kilometres away at Ocean Grove on the Bellarine Peninsula and claiming the allowance.

Mr Guy said the Andrews Government “has a huge problem with rorting.”

“The taxpayer, Victorians will be very angry, furious to know the Premier has two standards, one for everyone else and one for his own MPs,” Mr Guy said.

He’s got to sack these people, he’s got to sack the Speaker and sack the Deputy Speaker. 

“They’ve been caught out rorting and they now deserve to go.”

Confirming Mr Nardella had also claimed the allowance, a government spokesperson said the matter had been referred to the Audit Committee of Parliament and that the Premier urged the committee to provide recommendations on the use of the entitlement “as soon as possible.”

A Government spokesperson said there would be no further comment on Mr Languiller’s resignation.

#BREAKING Telmo Languiller resigns as Speaker following expenses scandal @9NewsMelb pic.twitter.com/i72JLYKWHx

— Dougal Beatty (@DougalBeatty) February 25, 2017

On Friday Premier Daniel Andrews defended Mr Languiller, saying he had not made any excuses and would repay the money.

Mr Andrews said it was “self-evident” the entitlement was designed to cover expenses for country MPs, not city MPs living in regional areas.

Mr Languiller and Mr Nardella move to the backbench, the role of Speaker and Deputy Speaker will have to be filled.

Mr Andrews says the party will nominate candidates at the next regular caucus meeting.

– ABC, with AAP