Victorian police have announced two former state MPs will not face charges, despite both having falsely claimed a parliamentary allowance.

Former Speaker Telmo Languiller and former Deputy Speaker Don Nardella were forced to resign from their posts after it was discovered they were falsely receiving an allowance for living outside of their electorates.

Before the scandal broke, Languiller and Nardella had received $38,000 and $98,000 respectively, which they have been ordered to pay back.