Australians who move overseas will be required to repay their higher education debts from 2017 onwards, following the Senate's passing of new legislation closing the loophole.

For the past 26 years, Australians living overseas have not been required to repay their HELP or HECS debts.

That will change from July 2017, when the loophole will close.

The Federal Government claims the move will save more than $150 million over the next decade and help ensure the sustainability of the university sector.

When the measures were first announced in May, then-education minister Christoper Pyne said the changes would also make the system fairer.

"No government has ever tackled this obviously unfair situation — it's been in the too-hard basket," he said in a statement.

"Our plan will enforce the same HECS repayment obligations on Australians living overseas that apply to those who remain on our shores.

"There is no good reason why someone working as a banker in London or New York and earning over the threshold shouldn't pay back what they owe Australia."

Labor has supported the legislation, which will be applied retrospectively for anyone who has lived overseas for more than six months.

It will apply to approximately 46,000 people, but only if they meet the same income threshold that applies in Australia, which is currently set at $54,126 a year.