The days of hunting for your own bank's ATM to make a free withdrawal could soon be a thing of the past, with all four of the big banks announcing they will axe fees for customers of other banks.

CBA, Westpac, ANZ and NAB banks said they were aware of the deep unpopularity of "foreign ATM" fees among Australians.

The CBA was the first to abolish the $2 fee for each withdrawal by non-customers.

"We have been listening to consumer groups and our customers and understand that there's a need to make changes that benefit all Australians, this is one of the steps we're taking to make that happen," said Matt Comyn, group executive of retail banking services.

Westpac quickly followed suit, emphasising the benefits afforded to those in regional and rural Australia.

"We want all Australians, whether they are Westpac Group customers or not, to benefit from one of Australia's largest ATM networks," Westpac executive George Frazis said.

"This will make it more convenient for millions of Australians to conveniently obtain cash, with no additional fees.

"It will particularly assist Australians in rural and regional areas."

ANZ then announced it would dump ATM fees from October.

"We know ATM fees are one of the most unpopular and while our customers have benefitted from our network of ATMs across the country, this is another example of acting on customer feedback as well as genuine reform from the industry," executive Fred Ohlsson said.

Lastly, NAB announced their move to drop the fees, calling the decision a "good outcome for customers".

"We know it has been frustrating for them to be charged to withdraw their own money from an ATM, and the change we are announcing today will benefit millions of Australians," chief customer officer Andrew Hagger said.

There were more than 250 million withdrawals across all Australian banks by non-customers last financial year, according to Reserve Bank data.

Together, Australian financial institutions made $500 million from these fees over the financial year.

Treasurer, Shorten claim credit for end to 'rort'

Treasurer Scott Morrison pointed to Federal Government pressure as the reason behind the CBA's decision.

"The Turnbull Government has been working hard to ensure bank customers get a better deal and this is further evidence we are getting results," the Treasurer said in a statement.

Opposition Leader Bill Shorten earlier described the fees as a "rort".

"The Commonwealth Bank has finally realised that the game is up and the rort has got to stop," Mr Shorten said.

He attributed the move to pressure from the Opposition for a banking royal commission.

'It's yesterday's banking model'

Banking analyst from Digital Finance Analytics, Martin North, said it is not a huge shock to see the big banks ditch this fee.

"There's no doubt that the volume of transactions through ATMs is falling as more and more people are paying for things by cards, swiping and those sort of things," he said.

"So essentially you could argue that this particular source of revenue was on the way down anyway.

"It's yesterday's banking model … the future is all about mobile payments and it's about pay and go and so perhaps there was always going to be a decrease in the revenue from this source.

"Maybe it's about picking the time to try and make a bit of a splash about it."

Consumer group Choice had also been urging the other banks to remove the fees.

"We shouldn't be paying them, the United Kingdom has already shown they can run an ATM network that is free of fees," Choice spokesman Tom Godfrey said.