An independent probe into Holyrood's expenses system has recommended that MSPs be banned from hiring their relatives from 2015.
The Scottish Parliamentary Corporate Body commissioned Sir Neil McIntosh to carry out an inquiry into how taxpayers cash is spent by MSPs, following the expenses scandal at Westminster.
The report, unveiled on Tuesday afternoon, suggests the system north of the border is largely robust. However, it has made two key proposals, the biggest of which is banning MSPs from using public cash to hire family members.
Currently, 26 Scots politicians employ spouses or relatives, while three employ two family members.
Labour's Michael McMahon employs his wife and daughter, Lib Dem John Farqhuar Munro's wife and grandchild work for him, while the SNP's Anne Mclaughlin employs her sister and niece.
Under the new proposals, any MSP who wanted to continue employing family after 2015 would have to fund their salary from their own pockets rather than the taxpayers.
A report into Westminster's expenses, carried out by Sir Christopher Kelly, recommends a similar ban. However, politicians are likely to still be allowed to employ each others relatives.
Sir Neil's second key proposal would see MSPs pay capital gains tax when selling a second home in Edinburgh which had been subject to taxpayer mortgage payments.
Plans are already in place to end mortgage interest payments for second homes in Edinburgh in 2011. However, under the new recommendations, MSPs who had received the payments would be obliged to pay tax when they sold their property, even if the sale was not immediate upon them leaving office.
Presiding Officer Alex Fergusson said the report would help the Parliament build on well regarded existing arrangements.
He said: "I am grateful to Sir Neil for carrying out this independent examination of our expenses scheme. He has delivered his carefully considered report to us on time and has striven to balance fairness to Members with public confidence in our expenses system.
"The SPCB welcomes Sir Neil's opinion that the Parliament has established a robust, transparent and practical basis for the reimbursement of expenses to Members - and that this has already been broadly recognised in the reviews undertaken in Wales and Westminster.
"The SPCB intends to accept this package of measures in full and bring the necessary resolutions to Parliament for its approval."
Officials have now been instructed to bring forward an action plan in the new year, outlining how Sir Neil's recommendations could be implemented.
Mr Fergusson added: "The Corporate Body commissioned this report back in June to demonstrate that the Scottish Parliament is not complacent. While Holyrood has been held up as a model of good practice by others, we remain committed to ensuring that we can continue to command public confidence in our systems."
