Virgin Australia will roll out the changes on Monday, while Qantas, Jetstar and QantasLink passengers must stop using the portable battery-powered chargers on planes from December 15.
Travellers can still carry up to two of the devices in their cabin luggage, but they must comply with energy limits and be stored within easy reach.
The crackdown was sparked by a series of fires on flights, including a blaze in an overhead locker on a Virgin Australia flight from Sydney to Hobart in July that was thought to have been caused by a power bank.
The portable devices contain a battery that acts as a backup power supply for other devices such as mobile phones or laptops, but when they overheat that can release a toxic, flammable gas and spark dangerous blazes on board.
While power banks were not especially prone to catching on fire during flights, the consequences of their failure on a plane were far more serious than if the same thing happened on the ground, University of Sydney senior lecturer Wesley Dose said.
"The chances of an incident are very, very low anywhere but the consequences in an airplane are quite severe," Dr Dose told AAP.
Generally, the bigger the power bank the more energy it stores and the greater fire risk it could pose.
Airlines have banned all devices with a maximum capacity of greater than 160 watt hours, which Dr Dose said could fully charge a mobile phone battery up to 10 times.
Most laptops and phones are also powered by lithium-ion batteries, but their in-built monitoring systems significantly reduce the risk of an incident.
"Lower quality or cheaper devices will have fewer of these safeguards and this comes with an increased risk," Dr Dose said.
Virgin Australia has the strictest rules, only allowing devices with a capacity of up to 100 watt hours, while higher-capacity power banks up to the 160 watt hour limit must be approved by the airline and stored in a seat pocket or under a seat.
Qantas allows all power banks smaller than 160 watt hours and also permits them to be stored in overhead lockers.
The rules apply to all international and domestic flights operated by the major Australian airlines, while power bank rules vary for close to 60 other carriers that operate international flights into and out of the country.
Experts advise all travellers to check airline policies before flying and make sure to board with a fully charged device after the changes, as well as packing a charging cord with a USB connection for suitably equipped planes.
Power banks should only be bought from reputable manufacturers and they should never be stored in checked baggage.
POWER BANK CHANGES
QANTAS, JETSTAR AND QANTASLINK
Rule: Power bank use on board banned, up to two devices in cabin baggage
Size: Maximum capacity of 160 watt hours per device, battery details must be displayed
Storage: Seat pocket, under seat or in a nearby overhead locker. Banned from checked luggage
VIRGIN AUSTRALIAÂ
Rule: Power bank use on board banned, up to two devices in cabin baggage
Size: Maximum capacity of 100 watt hours automatically allowed, 100-160 watt hour devices require airline approval
Storage: Seat pocket or under seat. Banned from checked luggage
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