Speaker Bronwyn Bishop resigns under pressure

Prime Minister Tony Abbott has announced that Bronwyn Bishop has resigned as Speaker of the House of Representatives after weeks of pressure surrounding the embattled veteran MP.

"Today Ms Bishop called me to let me know that she would be resigning to the Governor-General," the Prime Minister told a media conference, adding that it was the system was to partly to blame, instead of an individual.

He added that there would be a "fundamental review" and reform to make sure the parliamentary entitlements are used as per public expencations.

"We have a situation where spending is arguably inside the rules but plainly outside community expectations," he said.

Federal Opposition leader Bill Shorten earlier declared "enough is enough" and demanded the Prime Minister Tony Abbott tell Bishop to resign.

"Mr Abbott has to show some courage and say to Bronwyn Bishop, you must resign. Nothing less than that is good enough," he told reporters in Melbourne.