She was a Labor Party Member of the New South Wales Legislative Assembly from 2003 to 2010, representing the electorate of Penrith.
In 1999, Paluzzano was elected to Penrith City Council as a Councillor in the South Ward and remained a councilor until 2004.
[4] In 2008, Paluzzano was appointed Parliamentary Secretary Assisting the Minister for Education and Training by Premier Nathan Rees.
At a subsequent ICAC hearing on 5 May, Paluzzano admitted to falsely signing employee pay forms and using her electoral mail allowance for political purposes.
[10] Her resignation triggered a by-election for her seat, which saw it resoundingly lost to Liberal candidate Stuart Ayres on a swing of over 25 per cent.
[12][13] On 7 June 2012 Paluzzano pleaded guilty to four charges relating to falsely claiming parliamentary payments between 2006 and 2007, as well as giving misleading evidence to the corruption watchdog during the 2010 inquiry.