The former Wannon MP served as Speaker of the House of Representatives during the final term of the Howard government.

He said Mrs Bishop had made the right call for the good of the Federal Parliament.

Prime Minister Tony Abbott called a snap media conference on Sunday afternoon to announce the Speaker's resignation and a major review into MPs entitlements.

Mr Hawker told The Standard on Sunday night the past few weeks had been a difficult time for Mrs Bishop and the Federal Parliament.

"Bronwyn has made the right decision," the former Liberal MP said. "It doesn't come as a great surprise, obviously with the news over the past few weeks.

"It's been a most unsatisfactory period for the Federal Parliament and something like this needed to happen."

"By all accounts, she is an excellent local member and has contributed to national public life more broadly."

Wannon MP Dan Tehan said Mrs Bishop’s resignation was an opportune time to move on to other issues.

“Bronwyn has done the honourable thing,” Mr Tehan said. “I also welcome the Prime Minister’s announcement of a review into entitlements.”

Ms Bishop issued a statement on Sunday and said she had written to the Governor-General and tendered her resignation and her "love" for the Parliament had driven her decision.

"I have not taken this decision lightly, however it is because of my love and respect for the institution of the Parliament and the Australian people that I have resigned as Speaker," she said.

Labor and crossbench MPs have been demanding the Speaker's resignation over revelations she hired a $5000 private helicopter to travel from Melbourne to Geelong for a Liberal Party fundraiser ahead of the November state election.

Mrs Bishop initially refused to apologise although agreed to repay the money.