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Bishop resigns as Speaker over expenses

Bronwyn Bishop has resigned as Speaker over the travel expenses scandal.

Prime Minister Tony Abbott announced on Sunday afternoon that Mrs Bishop will tender her resignation to Governor-General Peter Cosgrove.

Fresh allegations of Mrs Bishop's extravagant taxpayer-funded travel have almost become a daily occurrence since it was revealed she spent over $5000 on a chartered helicopter flight to attend a Liberal Party function.

Mr Abbott announced a fundamental review of MPs entitlements.

"It won't just be tinkering with the system," he told reporters in Sydney.