Australian parliamentary Speaker Bronwyn Bishop's resignation has sparked a fresh review of politicians' perks.

Bishop has caved in to mounting public pressure over her travel expenses this afternoon and tendered her resignation to Governor-General Peter Cosgrove.

The scandal began on July 15 when it was revealed the Speaker spent over $5000 chartering a luxury helicopter for an 80km trip from Melbourne to a golf club where she spoke at a Liberal party fundraiser.

Announcing her resignation from the Speaker's post, Prime Minister Tony Abbott said former Finance Department head David Tune and Remuneration Tribunal boss John Conde will undertake a fundamental review of MP travel entitlements.