ANZ has ditched ATM fees in Australia, as have the Commonwealth Bank, National Bank of Australia, and Westpac.
'The move by the Commonwealth Bank to stop charging non-customers to withdraw money is a win for consumers and sends a clear message to other banks that it's time to axe these fees'.
The consumer group Choice has told News Corp the decision will put pressure on other banks to follow suit and drop the unpopular fees.
There are 50 million cash machine withdrawals a day around Australia.
The announcements came two days after Treasurer Scott Morrison announced draft legislation to hold bank executives to "heightened standards of behaviour" and bolster trust and confidence in the financial system.
The Commonwealth Bank will scrap ATM withdrawal fees from all 3,400 cash machines across Australia, in a move that may signal the end of withdrawal fees for other banks across the country. Battered by scandals - from giving poor advice to wealth-management customers to allegations of manipulating a benchmark swap rate - lenders have been trying to head off calls by opposition lawmakers for a wide-ranging inquiry into the sector, and fight back against the government's decision to hit them with a A$6.2 billion levy over the next four years.
Group Executive of Retail Banking Services at the Commonwealth Bank Matt Comyn said the decision was created to increase convenience and help consumers save.
"As Australia's largest bank, with one of the largest branch and ATM networks, we think this change will benefit many Australians and hopefully demonstrate our willingness to listen and act on customer feedback", CommBank Group Executive, Retail Banking Services, Matt Comyn said.
A report by the Reserve Bank of Australia previous year revealed that Australians are actually using ATMs less because of the rise of EFTPOS and Pay Pass, which make it easy for people to pay without cash exchanging hands.
"We want all Australians, whether they are Westpac Group customers or not, to benefit from one of Australia's largest ATM networks", Westpac Group Executive George Frazis said in a statement.
Labor leader Bill Shorten kept up pressure for a royal commission.
"Imagine how we could get better banking for all Australians if we had a banking royal commission", he said.
Non-customers using Westpac ATMs will also have St. George, Bank of Melbourne and BankSA cut into the deal.
The lender's Bankwest cash machines and global cards are excluded, Commonwealth Bank said on its website.