Premier Denis Napthine announced the government's intentions to suspend him late Tuesday afternoon.

The suspension would last 11 days in which time Mr Shaw would be forced to pay back money and face expulsion from Parliament unless he apologises for misusing his parliamentary entitlements.

This means a by-election for the seat of Frankston is unlikely, assuming the suspension of Mr Shaw succeeds.

The Premier issued a document detailing 11 requirements for Mr Shaw to comply with.

These included Mr Shaw not travelling interstate or overseas on his electorate budget and apologising "to the house and the people of Victoria". 

Labor Member for Bendigo East Jacinta Allan said the opposition was calling for Mr Shaw to be expelled from parliament.

"The Labor opposition is unmoved in its view that the member for Frankston should be found in contempt and expelled from Parliament and we’ll be moving that way tomorrow," Ms Allan said.

"This matter only came to a head in the parliament this afternoon because it was brought on by the opposition," she said.

She said the situation was a "circus" but Labor's position on Mr Shaw had been consistent.