Federal Parliament is set to conduct its first comprehensive investigation into the case for a national anti-corruption watchdog after Opposition Leader Bill Shorten threw his support behind an inquiry.
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Mr Shorten said reform needed to go beyond the independent parliamentary expenses system proposed by Malcolm Turnbull to also include "an open and honest discussion" about whether Australia should have a federal Independent Commission Against Corruption (ICAC).
"For me, reform doesn't just stop at parliamentarians' expenses," Mr Shorten told reporters on Monday at his first press conference since returning from his summer holidays.
"It must include greater transparency, greater accountability on political donations – and no discussion about electoral reform and rebuilding the confidence of Australians in the political process can take place without having an open and honest discussion about a federal ICAC.
"Before the last election there was a Senate committee set up to examine the existing capacities of the anti-corruption regime in Australian federal sphere of government.
"We need to get that Senate committee back going again.
"We need to demonstrate to Australians that we're working for them, not just for ourselves."
With the support of Labor, the Greens and crossbench senators such as Nick Xenophon, there should easily be the numbers for the Senate to establish an inquiry into a federal ICAC.
Former Palmer United Party senator Dio Wang launched a short-lived inquiry into the establishment of a national integrity commission in the previous Parliament. The inquiry received written submissions and held two public inquiries in April, but lapsed before a final report could be handed down and received little media attention.
Mr Shorten said he did not believe most politicians use their taxpayer-funded entitlements in the same way as former health minister Sussan Ley, who took frequent taxpayer-funded travel to the Gold Coast. But he said the public was sick of expenses scandals and there was no time to delay an overhaul of the system.
"I think it is no surprise that Australians get frustrated with the mainstream parties because they perceive that they are all the parliamentarians are behaving in the manner that we have seen the former health minister behave in," he said.
"I will work with Malcolm Turnbull to reform the expenses regime of parliamentarians.
"If he doesn't have changes ready to go when parliament starts, we will be up for making those changes."
Mr Turnbull on Friday announced he would create an independent tribunal, based on a British model, to oversee politicians' expense claims. The panel would include the head of the Remuneration Tribunal, an experienced auditor, a former judge and a former MP.
