TENS of thousands of young Australians working overseas will be made to repay their university debts for the first time under new measures to be announced in the May 12 Federal Budget.

Education Minister Christopher Pyne has revealed his plan to go after graduates and dropouts earning good money overseas while skirting their study debts back home, known as HECS or HELP debts.

Starting in July 2017, young workers will no longer be able to avoid repayments they would have to make if working in Australia in a move expected to net $144 million for federal coffers in the first decade.

“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,” Mr Pyne said last night.

Mr Pyne has already started talks with Britain — where the majority of expats are working — on a tax treaty.

But he intends to go after tens of thousands working across the globe in the US, Europe and Asia as well.

New legislation will be introduced to target any Australian who has moved overseas for more than six months and will apply the same earning thresholds as in Australia.

Anyone living abroad and earning more than $53,000 in the 2016-17 tax year will need to pay.

Mr Pyne said the current system was blatantly unfair.

“Because graduates living overseas don’t have to do an Australian tax return, there is no way to know if they are earning above the threshold,” Mr Pyne said.

jessica.marszalek@news.com.au

Originally published as Pyne’s plan to crack down on uni debts