Federal Labor Member for Perth Tim Hammond has announced he is resigning from Parliament, triggering a by-election in one of Western Australia's highest-profile seats, saying he cannot be a federal politician and a good father to his three children under six.

Key points: Tim Hammond says he is leaving federal politics to spend more time at home

Tim Hammond says he is leaving federal politics to spend more time at home Voters in the seat of Perth will now face a by-election before the next federal poll

Voters in the seat of Perth will now face a by-election before the next federal poll It is believed WA Labor state secretary Patrick Gorman could be a candidate

Mr Hammond, 43, said the toll the job was taking on his family was too great.

"I guess I'd reached the point, after more soul-searching than I can describe this morning, that it just wasn't working," he said.

"It wasn't working in relation to how present I needed to be at home, as a dad to three wonderful little children.

Sorry, this video has expired 'A lot of my colleagues make it work, but I'm not one of them': Tim Hammond resigns

"I have a six-year-old girl, a two-and-a-half-year-old girl and now a six-month old boy. The six-month-old was an unexpected but wonderful blessing that wasn't on the cards when I was elected two years ago.

"My wife and I had tried everything under the sun to make this work in a way that I felt it wasn't compromising my ability just to be the best dad that I could be.

"The reality is that I thought I had an appreciation of how to manage my duties as a federal Member of Parliament in a way that did not have such an impact on my family. I got that wrong.

"I just did not anticipate the profound effect my absence would have on all of us."

Speaking during an at-times emotional interview, Mr Hammond said the Labor Party had been "fantastic" to him and many people would be surprised at his decision because he had sought to be an MP for many years.

Mr Hammond spoke at a media conference alongside his wife Lindsay and baby son Tully. ( AAP: Rebecca Le May )

By-election to test Labor's popularity in WA

Mr Hammond confirmed that his resignation would take effect in the near future, meaning the voters of Perth would face a by-election before the next federal poll scheduled for 2019.

"There are, of course, obligations I need to discharge to my electorate, to my staff and to the people of Perth. I expect this will take a relatively short period of time, enabling me to resign in the very near future," he said in a statement.

"I regret — so very much — that a by-election will be an inconvenience for my local community.

"However I know Labor will present a strong candidate to continue representing Perth — fighting for good jobs, better schools and hospitals, and a fair share for WA.

"I wish Bill Shorten, Tanya Plibersek and their wonderful Labor team every success."

Mr Hammond says politics is taking too big of a toll on his family. ( ABC News: Nick Haggarty )

Labor Leader Mr Shorten released a statement thanking Mr Hammond for his service and saying he understood the reasons for his decision.

"After two years of travel and a lot of time spent on the opposite side of the country, Tim has decided to put his family first," Mr Shorten said.

"As a colleague and a friend, I'm disappointed he won't be part of our next Caucus but as a husband and a father, I'm glad he'll be with the people he cares about most in this world.

Mr Hammond is part of Mr Shorten's frontbench, having served as the Opposition spokesman for consumer affairs and as an assistant spokesman in a number of portfolios including resources and innovation.

Bill Shorten says he understands Mr Hammond's decision and is wishing him well. ( ABC News )

He has also been the ALP's senior vice-president since 2015, the year before he was elected to the House of Representatives in the seat of Perth.

There is now strong speculation WA Labor state secretary Patrick Gorman could be a possible candidate for the seat.

The ABC understands Mr Gorman, who could not be contacted, has the backing of Mr Shorten.

The safe Labor electorate was held by long-time Labor MP Stephen Smith for 20 years until his retirement at the 2013 election.

It was then held by current WA Regional Development, Agriculture and Food Minister Alannah MacTiernan during a three-year stint in federal politics, before she returned to state politics.

Well wishes from friends, rivals

Federal Finance Minister Mathias Cormann issued a statement saying he was sad to hear the news his fellow West Australian MP would be stepping down.

"While we are political competitors, we are also friends and colleagues involved in the same profession, focused on making a positive difference to our community and to our country," he said.

"Tim is a very decent, highly capable individual with a bright future in whatever he decides to do next.

"Public service as a federal politician from WA is tough on our families. There is no question about that."

Mr Hammond (left) was elected to the House of Representatives in 2016. ( ABC News: Nick Haggarty )

Opposition Treasury spokesman Chris Bowen said Mr Hammond had made an enormous political sacrifice.

"Tim had the capacity and potential to rise in time to be at the very top of Australian politics. His decision to walk away and put his family first is a testament to him," he said.

His WA colleague, Member for Burt Matt Keogh, said the fly-in fly-out (FIFO) lifestyle of MPs from WA was very hard on families.

"Tim is also one of a group of newer MPs, like me, balancing the FIFO life of a Federal MP with having a young family. This is especially hard from WA. It is even harder on our spouses."

Hammond 'probably not interested' in state politics

WA Premier Mark McGowan described Mr Hammond's decision as brave but understandable.

"He's someone I think was on the track to become a cabinet minister and perhaps higher, and so this is a decision he's made in the interests of his own wife and children," he said.

Mr Hammond was part of Bill Shorten's frontbench as Opposition spokesman for consumer affairs. ( ABC News: Ross Nerdal )

Mr McGowan said federal MPs often had to spend long periods away from their families.

"At a state level to be fair most of us go home every night, whereas at a federal level they are away a lot," he said.

But Mr McGowan indicated Mr Hammond had not sought to move into state politics.

"He's probably not interested in that. I think he just wants to get back and be a dad and a husband again … that's his main priority," he said.

WA Liberal Party state director Sam Calabrese said the party would consult with members before deciding whether to run a candidate in the Perth by-election.

The Liberals had already opened nominations for the seat for the next general election.

State Liberal leader Mike Nahan urged the party to run in the by-election.

"It is a seat we will struggle to win ... but it is one we need to contest I believe," he said.