Australian minister Sussan Ley resigns over expenses scandal

Australian health minister Sussan Ley has resigned after using a taxpayer-funded trip to purchase an apartment on Queensland's Gold Coast

Prime Minister Malcolm Turnbull announced Ley’s resignation Friday, saying that Arthur Sinodinos would continue as Acting Health Minister until her replacements in the health, aged care and sport portfolios are be announced next week.

"Australians are entitled to expect that politicians spend taxpayers' money carefully, ensuring at all times that their work expenditure represents an efficient, effective and ethical use of public resources," he was quoted as saying by news broadcaster ABC.

"We should be as careful and as accountable with taxpayer money as we possibly can be."

On Monday, Ley had temporarily stepped down without ministerial pay after admitting she made “an error of judgment” billing taxpayers for trips to Queensland’s Gold Coast during which she purchased a luxury apartment.

Government documents released under Freedom of Information revealed that Ley has taken 27 taxpayer-funded flights in and out of the Gold Coast over recent years, including over two consecutive years.

Entitlements scandals have engulfed Australian politics in recent years.

Turnbull has now pledged to set up an independent watchdog, based on the UK system, to oversee parliamentary expenses.

In her resignation statement, Ley maintained she had not broken any rules, "not just regarding entitlements but most importantly the ministerial code of conduct".

However, she said the saga had become a distraction for the government.

"Whilst I have attempted at all times to be meticulous with rules and standards, I accept community annoyance, even anger, with politicians' entitlements demands a response," she said on Friday.

She described the apartment purchase as an "error of judgement" that was "neither planned nor anticipated".

Turnbull said he believed Ley's resignation was the "right judgement" and thanked her for her service.