Police will not lay any charges against current Labor MPs connected with the red shirts scandal, including Buninyong MP Michaela Settle, who worked as a field organiser in the scheme.
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Deputy Commissioner Shane Patton on Thursday said that 16 Members of Parliament who had been investigated and 18 field organisers interviewed "have been exonerated".
He said the 16 MPs had been asked by police for an interview, but had declined.
But two men who orchestrated the scheme are still being investigated by police. Deputy Commissioner Patton confirmed the men aren't current MPs and had not worked as field organisers.
Ms Settle, who worked as a field organiser for Labor in the 2014 election campaign, was reportedly interviewed by police in August last year when she was one of 18 Labor campaign workers taken into custody and questioned over the affair.
In a damning report released last year, Ombudsman Deborah Glass found Labor broke parliamentary rules when it used $388,000 of taxpayer funds to pay for campaign staff to help win the 2014 election.
Labor subsequently repaid the money.
Deputy Commisioner Patton said in a press conference the police investigation had focused in on the actions of March 3 to 7 in 2014, and the investigation "followed the ball where the evidence took them".
Ms Settle was named in the report released by the Victorian Ombudman last year as receiving 70 days work by “authorisation of time-sheets”, which certified casual electorate officer work by “persons employed as Field Organisers”.
Ms Settle’s time sheet was signed for by former Ripon MP Joe Helper, but was assigned as a field organiser for the Wendouree district, which at the time was held by Sharon Knight.
The Buninyong MP has always maintained that she had engaged in no wrongdoing over the use of parliamentary entitlements to pay for Labor election workers in the party's campaign that saw the first-term Liberal government of Dennis Napthine lose power.
The Ombudsman’s report found Labor used taxpayer funds to create an “artifice” by paying casual electorate officers to work as part-time campaigners instead of carrying out electorate duties for MPs.
The scheme involved a “60:40 split” in which some casual electorate officers were paid partly by the Labor Party for their field campaign work with the rest of their pay covered by taxpayer funds.
Ms Glass found that there was “no practical demarcation” between the time claimed as electorate officers and election campaigning.
In total, 23 current and former MPs authorised the payments of $387,842 from parliamentary funds.
Former treasurer John Lenders was named as the architect of the scheme in the Ombudsman’s report.
- With The Age
