PM Abbott announces Bronwyn Bishop has resigned as Speaker

Prime Minister Tony Abbott has revealed Bronwyn Bishop has resigned from her role as Speaker over the travel expenses scandal.

Mr Abbott made the announcement during a live press conference in Sydney at 4.40pm (AEST) today, and said there would be a "fundamental review" of the ministerial entitlements system.

"Today Ms Bishop called me to let me know that she would be resigning to the Governor-General that particular position," he said.

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"What has become apparent ... is that the problem is not any particular individual, the problem is the entitlements system more generally."

Mr Abbott said the review into the entitlements would be led by former head of the Department of Finance, David Tune, and the head of the Remuneration Tribunal, John Conde.

"Bronwyn Bishop has done the right thing by the parliament, by the government and by the people of Australia," Mr Abbott said.

Mrs Bishop was not present at the press conference, but released a statement a short time later.

"I have today written to the Governor-General and tendered my resignation as Speaker of the House of Representatives effective immediately," she wrote.

"I have not taken this decision lightly, however it is because of my love and respect for the institution of the Parliament and the Australian people that I have resigned as Speaker.

"I look forward to continuing to serve the people of Mackellar as their local member, the job that has always been my first responsibly despite other positions I have held within the Parliament."

It follows weeks of pressure for the Speaker to stand down over the expenses saga, which began with the "choppergate" scandal.

Reports also emerged this morning that Liberal Party frontbenchers calling for Mrs Bishop's resignation.

Mrs Bishop had spent more than $300,000 on international business last year, four times more than Labor Speaker Anna Burke in 2013 - an election year.

Peter Slipper billed $134,000 for his international work in 2012.

There have also been claims Mrs Bishop has charged more than $260,000 over the past five years on luxury car trips.

Mrs Bishop reportedly spent more than $1000 on two chauffeured car journeys in Sydney on the same day she attended the opening night of play "Yes, Prime Minister" in April 2012.

Labor had earlier indicated it would move a no-confidence motion against Mrs Bishop when parliament resumes next week and has insisted she fall on her sword.

"Clearly Mr Abbott is more afraid of Bronwyn Bishop than he is of the Australian people," Opposition Leader Bill Shorten said.