Families of politicians face being downgraded to economy class flights and stopped from claiming taxpayer-funded trips to major sporting events.
While the changes to entitlements have been described as sensible, there are calls for the rules to be more stringent.
Prime Minister Anthony Albanese has moved to restrict family reunion travel entitlements for MPs following weeks of backlash around ministers charging the public purse to fly spouses to grand finals and private holidays.
Attorney-General Michelle Rowland paid back about $10,000 after charging taxpayers more than $20,000 for family travel to Perth for a week-long holiday in 2023 following ministerial engagements in the west.
Sports Minister Anika Wells also came under fire for flying her husband to numerous grand finals and the Australian Open and taking her family to the snow while claiming family reunion flights.
Mr Albanese wrote to the Independent Parliamentary Expenses Authority seeking advice and has since written to the independent remuneration tribunal with recommendations for changes.
The tribunal sets politicians' wages and entitlements.
"It is appropriate that we have an arm's length process on these matters," Mr Albanese told reporters in Canberra on Tuesday.
His letter recommended family travel be downgraded from business class to economy.
Flights should be restricted to between Canberra and the MP's local area, effectively removing access to nationwide entitlements, he said.
But spouses or partners of senior office holders should be able to claim flights to events they are invited to that directly relate to a minister's portfolio or parliamentary duties, Mr Albanese recommended.
The prime minister called for the tribunal to take into account the circumstances of new mothers or fathers, or MPs with children who are dependents, to make sure parents weren't disadvantaged.
"We want a parliament that reflects Australia in all its diversity," he said.
The tribunal will consider the recommendations in early January.
Independent senator David Pocock welcomed the reforms after calling for tightened restrictions to prevent profligacy, saying they brought spending more into line with community expectations.
"These are sensible changes the prime minister has proposed," he told AAP.
"It demonstrates that the government of the day does have sway on how these rules are set.
"I think more needs to be done to look at the parliamentary expenses framework overall and travel, especially during election campaigns."
The comment follows changes made by Labor before the federal election in May to allow staff publicly-funded travel to help with political campaigns.
The government defended the change as a clarification of the rules rather than an expansion.
Opposition finance spokesman James Paterson accused the government of treating taxpayer funds as a personal expense account.
But he didn't support the announced changes, saying "we will examine the detail when it is actually provided".
"It has become a clear trend of this government to avoid any blame or wrongdoing until they are forced, kicking and screaming, to make changes following sustained pressure from the opposition and the Australian public," he said.
The coalition had previously called for tighter travel entitlements, offering to work with the prime minister on what this would look like.
Opposition Leader Sussan Ley wrote to Mr Albanese requesting a meeting about "how public trust in the broader parliamentary system can be strengthened, so community expectations are being met".
The opposition has been pushing for Mr Albanese to refer his ministers to his department for an investigation into whether they contravened the ministerial code of conduct rather than the travel entitlement guidelines.
The code stipulates public resources aren't wasted or used extravagantly.
