The Federal Government is set to announce its long-awaited changes to the banking industry, including the scrapping of exit fees for customers with a mortgage.

The Government has been consulting with regulators and industry on the changes and Treasurer Wayne Swan will announce the reforms in Canberra today.

It has also been pushed into action after public anger due to the major banks lifting interest rates above the official cash rate last month and announcing massive profits.

Mr Swan is also launching new measures to help smaller banking institutions, credit unions and building societies, with the changes coming into effect on July 1.

The Australian Competition and Consumer Commission (ACCC) will be given greater powers to crack down on banks colluding on interest rate prices, or price signalling.

Australia has some of the world's highest exit fees for customers with a mortgage, with the cost currently around $1,000.

Mr Swan says the reforms are designed to boost competition, which he says is critical to keeping interest rates low. He says the changes will make it easier for people to shop around and switch banks.

"This will be a balanced package. It will have a range of reforms, both short-term, medium-term and long-term, but reforms which will be enduring and make our system more competitive over time," he said.

Mr Swan says he does not expect the big four banks to be happy with the package, but he says the reforms will make the banking system fairer.

"It will put more competitive pressure in the system. The big four banks at the moment don't think that their customers will go down the road looking for a better deal," he said.

"It's important to put in place some building blocks to make it easier for people to shop around. That's part of the package that will be announced."

Opposition Leader Tony Abbott says he thinks the plans will be more "window dressing".

"This is a Government which has been all talk and no action when it comes to the banks," he said.

"On more than 30 separate occasions for instance, Mr Swan has got very angry about the banks raising their interest rates in excess of the reserve. I don't believe that this Government can be trusted."

Mr Abbott says he does not think the banks will pay any attention.

"It's probable that the banks will take as much notice of this latest huffing and puffing from the Treasurer as they've taken of previous huffings and puffings from the Treasurer," he said.