MPs who make false allowances claims could face criminal charges under new measures announced by Commons Leader Harriet Harman.
She said the Parliamentary Standards Act, will create new criminal offences as well as establishing an independent body to oversee a reformed system of MPs' pay and perks.
And she told the Commons that the blacking out of large amounts of information on MPs' published expenses receipts will be "looked at again" ahead of the release of details of the 2008-9 claims.
She agreed with shadow Commons leader Alan Duncan that only the "barest minimum" of information should be redacted to protect personal information such as phone numbers and credit card details.
In a Commons statement on measures adopted to clean up Westminster in the wake of the expenses scandal, Harman said: "The public want to be able to have full confidence in the Parliamentary system.
"Members want there to be full confidence in the system so that the cloud of suspicion is lifted and so that the reputation of the House can be restored."
On the publication of receipts, Harman acknowledged concerns that MPs' security must be protected "but I can tell the House that for the publication of the 08-09 receipts this autumn the question of redaction will be looked at again, considering the advice of the Information Commissioner".
She said a review of all expenses over the last four years was being carried out by Sir Thomas Legg .
The new Parliamentary Standards Act creates new offences of: knowingly making a false claim for an allowance; failing without reasonable excuse to declare a relevant interest, contravening without reasonable excuse the rules on paid advocacy.
Harman said she hoped the Bill would be passed into law by the time the Commons rises on July 21 so the new Parliamentary Standards Authority will be able to start work once Sir Christopher Kelly's Committee on Standards in Public Life has completed a "root and branch" review of the allowances system.
The Bill followed cross-party discussions, but Harman said: "A number of those on the cross-party group, including the government, are prepared to go further."
The Act would be the "first stage" of legislation but there could be more new laws if there was a consensus for further action.
As well as steps already taken, Harman said a revised code of conduct, updated by the Standards and Privileges Committee, had been published .
But Conservative shadow leader of the House, Alan Duncan was critical of plans to publish details of all outside earnings, claiming many MPs believed the new rules were "unworkable".
Duncan said: "This House needs to recognise two things.
"First is the depth of public anger which we have faced over the last couple of months.
"And second is the need to have a Parliament that works and has not become so brow-beaten and rules-driven that it loses all the confidence and freedom it needs to do its job properly."
He told MPs the Conservative Party had "led the way" on bringing transparency to the "murky" allowances system, he said including the online publication of every frontbenchers' receipts.
The official release of all MPs' receipts for the last four years had turned out to be an "unmitigated PR disaster".
He questioned the legal status of Sir Thomas' inquiry and asked "where in law would it leave a member who has been reported unfairly as having cheated and fiddled?"
For the Liberal Democrats, David Heath said he hoped the problem of redaction could be resolved.
"Data protection is important but acres of black space is a redaction to the absurd," he said.
Heath added that there were problems with rules on declaring all outside earnings.
"I do not want to be in the position where no Member of this House can visit a factory in their constituency and accept a cup of tea and then come back and say something in this House about the industry or their own constituency.
"I don't think that the code of conduct and the guidance notes yet really provide for those circumstances and make that distinction."
Progress
House of Commons
First reading: June 23 2009 [HC Bill 121]
Second reading: June 29 2009
Committee stage:
Report stage: July 1 2009
Third reading: July 1 2009
House of Lords
First reading: July 2 2009 [HL Bill 60]
Second reading: July 8 2009
Committee stage:
1st sitting: July 14 2009
Second sitting: July 16 2009
Report stage: July 20 2009
Third reading: July 20 2009
Consideration of Lords Amendments: July 21 2009 [HC Bill 146]
Royal Assent
July 21 2009: Parliamentary Standards Act
