By Andrew Brown and Tess Ikonomou in Canberra

Federal politicians could be fined thousands of dollars for misconduct in office amid calls for better parliamentary behaviour.

An Independent Parliamentary Standards Commission will be set up under laws introduced to the House of Representatives on Wednesday, following a recommendation from a landmark report into workplace culture at Parliament House.

The commission will be able to carry out investigations into workplace conduct and enforce a behavioural code.

Sanctions could include fines of between two to five per cent of the base salary of an MP or senator, or suspensions from parliament.

A five per cent fine for a backbencher on the lowest parliamentary salary would be worth more than $11,000.

The code of conduct would apply to parliamentarians, their staff and other employees within federal parliament.

Finance Minister Katy Gallagher said the independent watchdog would make reports to the parliament’s powerful privileges committee, and rejected suggestions the process would act as a protection racket.

“Often members are very senior members of respective political parties. They deal with difficult matters all the time and they haven’t traditionally operated in a partisan way at all,” she said.

But Nationals senator Matt Canavan told Nine’s Today program the name-and-shame powers would “encourage a whole lot of frivolous and vexatious complaints” to try and take down political opponents.

House of Representatives Speaker Milton Dick also called on elected officials to uphold better standards in parliament, following complaints from some MPs about conduct during question time.

“We must find ways to better engage in debate that maintains respectful behaviour,” he said.

While speaking alongside a group of independents calling for workplace culture to improve, Warringah MP Zali Steggall said better standards could only be modelled by the leadership.

“All those MPs take their cue from their leaders,” she said.

“Their behaviour matters, their words matter. What they do sets the standard for their followers.”

Domestic and Family Violence Commissioner Micaela Cronin issued a plea for political, business, community and faith leaders to focus on inclusivity.

“All leaders need to step up and be thinking about their language,” she told the National Press Club.

The commission was recommended as part of a 2021 report by the Australian Human Rights Commission into the workplace culture of Parliament House.

Assistant Public Service Minister Patrick Gorman said the reforms would allow for parliament to serve as a model workplace.

“These workplaces should uphold the standing of the parliament as a worthy reflection of the community,” he said.

The government said it hoped for the commission to be set up by the beginning of October.

The draft behaviour codes were endorsed in principle in 2023 and will be formally adopted once the bill passes.