Why more than half Australia's ATMs won't be included in banks' plan to scrap withdrawal fees

Over half of Australia's ATMs will not be included in the plan to scrap fees, as about 55 per cent of cash machines are owned by specialist operators.

The Commonwealth Bank was the first to announced early on Sunday the abolition of the fee with NAB, ANZ and Westpac quickly following suit.

But customers could still be hit with a fee if they visit an ATM at a pub or convenience store as many are privately owned.

Some charge up to $3 per withdrawal and both Labor and the Greens are calling for more to be done.

"The reality is that as long as half of the ATM's in this country are owned privately, we're going to have a major problem with extortionately high withdrawal fees," Greens leader Richard di Natale said.

• All big four banks scrap ATM withdrawal fee

• Banks urged to follow suit as Commonwealth Banks axes ATM fees

ANZ Group Executive Fred Ohlsson said the fee would be dropped on its more than 2300 machines from early October.

"While we had been actively working on how we provide fee-free ATMs for our customers, we have decided to remove these fees all together from October," he said in a statement.

Westpac Group Executive, Consumer, George Frazis said the decision would apply to its Westpac, St George, Bank of Melbourne and BankSA customers and particularly benefit rural and regional consumers.

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

"We understand that the 'foreign ATM' fee has been deeply unpopular with consumers."

Labor leader Bill Shorten said it was no reason to ease off a royal commission into banking.

"Imagine how we could get better banking for all Australians if we had a banking royal commission."

Reserve Bank of Australia data shows Australians made more than 250 million ATM withdrawals from banks other than their own last year.