The State Government has vowed to implement all 21 recommendations from the Operation Watts inquiry into Labor MPs and staff misconduct.
Premier Daniel Andrews announced a Parliamentary Integrity Commissioner with the power to investigate misconduct and recommend sanctions against MPs.
The Commissioner could investigate code-of-conduct complaints as well as bullying, harassment, sexual harassment and victimisation.
A joint Parliamentary Ethics Committee would also be established.
“Victorians deserve to have confidence in the political parties and public institutions that serve them,” Mr Andrews said.
“This report and the significant reforms it has driven are absolutely critical. That’s why we’re going to implement all of the IBAC’s recommendations – and go beyond them.”
The government will also ban MPs from employing close family members in electorate offices.
The Ministerial Code of Conduct will be amended to ensure Ministers don’t misuse public resources for party-specific purposes, the government announced.
It also vowed reforms to electorate officer recruitment and management, and more transparent government grant processes.
On top of the recommendations, the government will also set admin requirements for all political parties to receive public funding.
This includes party memberships being paid by “traceable means”, with mandatory photo ID checks of new members.
The government vowed to implement the measures by June 2024.