Victorian Premier Ted Baillieu is resisting calls to sack besieged Liberal MP Geoff Shaw, whose vote the government relies upon to stay in power.
Labor on Friday amped up the pressure on the government over the affair, calling on the premier to sack the Member for Frankston.
Opposition Leader Daniel Andrews also suggested state and federal authorities could examine the MP's 'rorting'.
But he has not referred the matters raised in Ombudsman George Brouwer's report to the police and Mr Brouwer did not recommend any criminal investigation.
The coalition government relies on the vote of Mr Shaw to retain its one-seat majority.
Mr Baillieu continued to support Mr Shaw, whom he considers a good local member.
The Frankston MP was doing a 'good job', the premier told reporters.
'I can understand from the media reports that people will be frustrated but we would like to see this over; we would like to get on with it.'
He slammed the opposition for twice blocking government attempts in parliament on Thursday to have the matter referred to the coalition-dominated privileges committee as recommended by the ombudsman.
Mr Baillieu continued to refuse to offer his opinion on Mr Shaw's actions.
'Every member of parliament is required to observe the law and required to observe the requirements of parliament. That's as it should be,' he said.
'But there is a process in place here and you (reporters) are inviting me to pre-empt that process and I'm not going to do that.'
The premier said the government would give notice of a motion to refer the matter to the committee, which the coalition would get through the parliament on its numbers.
Mr Andrews said the premier should fire Mr Shaw.
'There is only one thing more extraordinary than Geoff Shaw's rorting and that's the fact that Ted Baillieu continues to stand shoulder to shoulder with the rorting Member for Frankston,' he said.
Mr Andrews pointed to Mr Shaw's reference in the ombudsman's report to sacking an employee who he said had stolen stock from his hardware business.
The employee then became a whistleblower against Mr Shaw.
'The question today for the premier is if Geoff Shaw applies that standard in his business where a staff member is shown to have stolen stock they ought to be sacked, then the premier should apply the same standard to the way he runs his government,' Mr Andrews said.
'... rorting your parliamentary entitlements is no different and the premier, if he is to uphold any standard at all, needs to today sack the rorting Liberal member for Frankston from the parliamentary Liberal Party.
'To do anything less is to fail the test of leadership.'
Mr Andrews said Mr Baillieu's assertions Mr Shaw was a good local member were extraordinary.
'For heaven's sake, imagine what a bad local member looks like,' he said.
Mr Brouwer found Mr Shaw used his taxpayer-funded car, and probably knew his employees were using the car, to run his own business.
He also used a parliamentary fuel card to pay for petrol for another private vehicle.
The ombudsman said Mr Shaw may be in contempt of parliament or may have breached parliamentary privilege.
Mr Shaw on Thursday said he had again offered to reimburse the parliament for any costs associated with his parliamentary vehicle outside his entitlement.