Byelections cost taxpayers about $1million each and often annoy constituents, who resent having to vote outside the normal electoral cycle.

If such a system were adopted it would apply to former Opposition leader Brendan Nelson, whose resignation from the seat of Bradfield will force a byelection later this year.

The proposal would not cover all politicians who leave outside the normal electoral cycle.

"For example, penalty might not be payable if a member resigned because of incapacity due to ill health, whereas resignation to accept alternative employment, or because a member's party failed to win government, could attract a penalty," a discussion paper on electoral reform released by the Federal Government last week said.

The paper did not discuss the possible size of any fines.

The numbers of politicians quitting their seats and forcing byelections for reasons other than death or ill health are increasing.

From Federation until 1970 63.3per cent of the 98 byelections for the House of Representatives were caused by the death of a member, government figures show.

Since 1971 86.7 per cent of the 46 byelections have been caused by members resigning. In the past decade there have been nine byelections, two as a result of deaths, and seven as a result of resignations.