The Turnbull government is considering pursuing dumped senators Bob Day and Rod Culleton to repay hundreds of thousands of dollars to taxpayers.
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Senior government figures are discussing whether to go after the pair for up to $250,000 paid to them in parliamentary salaries and expenses last year.
The High Court has now ruled both men were invalidly elected - Mr Culleton because he was bankrupt and Mr Day because he had a constitutionally prohibited financial interest in the Commonwealth because of a complex office leasing arrangement.
Mr Culleton was paid more than $100,000 in salary and superannuation between the July 2 election and the court's decision in January. Mr Day was paid close to $130,000 between February, when the office arrangement took effect, and his November resignation.
Both men also racked up thousands in travel and other allowances.
Government sources say under the relevant laws, Senate President Stephen Parry must officially confirm there is a salary debt that needs to be repaid. Special Minister of State Scott Ryan could then waive it through an "act of grace" if there was an application to do so.
Mr Ryan has separate responsibility for reclaiming and allowance costs.
Finance department officials have also been involved in the discussions but Finance Minister Mathias Cormann does not have direct responsibility for the matter.
Senator Ryan said: "The Department of the Senate is responsible for paying the salary and allowances of Senators. Under section 16A of the Remuneration Tribunal Act, the Department of the Senate is responsible for recovery of debts arising from overpayment of salary.
"The Special Minister of State can only consider waiving a senator or member's debt if the individual concerned or the Department of the Senate makes an application to do so."
However, there is a view among some in the government that pursuing the money could just end up costing taxpayers even more in legal costs.
There is also a view that given both men are in significant debt, it could ultimately be a waste of time, joining the long list of creditors.
Labor MP Nick Champion said the government must pursue Mr Day for the money.
"I don't think anyone thinks he deserves what he was paid - it's clear he was never entitled to it," he said.
"The ball's now in the government's court about whether they make him pay it back. They turned a blind eye to this for nearly three years so I'm not holding my breath."
If Mr Day won't repay taxpayers, his Family First party should, Mr Champion said.
Mr Day declined to comment on the matter. Mr Culleton could not be reached.
