Lake Mac Libraries is getting rid of late borrower fees in a bid to encourage more people to use their local branch.
From the start of July, late fees will no longer be charged and existing fees will be wiped once the outstanding items are returned.
Borrowers with overdue items will have their membership temporarily suspended rather than incurring a fee.
Lake Macquarie City Council said fines would still apply if books were lost or brought back damaged.
Lake Macquarie council manager of arts, culture and tourism Jacqui Hemsley said they wanted to encourage, rather than deter, the community from visiting local libraries.
"Fines are perceived as a barrier to using library services, particularly for lower-income families who are most in need of them," Cr Hemsley said.
"The abolition of overdue fees will encourage members to return items, increase uptake of library collections and allow staff members to more effectively promote our services," she said.
The council's change aligns with the Australian Library and Information Association's (ALIA) stance on late fees.
"A growing number of Australian public libraries are removing fines for overdue items," a statement from ALIA said.
"This is in line with the global movement to make libraries more accessible for all people in our community."
ALIA said trials had shown the cost of collecting overdue fines was typically greater than the revenue received.
"Overdue fines are also a distraction from the core work of public libraries: lending items, encouraging reading and facilitating free access to information," ALIA said.
Other public libraries in NSW have ditched late fees including, Maitland City Council, Newcastle City Council, City of Sydney and Wollongong City Council.