The Association of Professional Engineers, Scientists and Managers' 2008 graduate survey found more than 60 per cent of technical graduates intended to work overseas within five years.

One in five of these students said escaping Higher Education Contribution Scheme fee repayments was an important reason they chose to look for work overseas.

Association chief executive Chris Walton said the results suggested university funding policy was driving graduates to countries ''where different taxation systems liberated them from student debt''.

''The skills crisis in the technical professions remains real, not just here but worldwide,'' he said.

''But Australia may not reap the benefit to the economy because of its lack of investment in education.''

The association welcomed this year's HECS changes, which reduced science degree fees for next year.

But it said engineering degree fees should also be reduced, as graduates were in short supply.

''Technical graduates in particular are financially burdened by student debt, with undergraduate fees virtually double humanities fees at an average of $30,000,'' Mr Walton said.

''If unaddressed, the skills crisis will affect Australia's economy and capacity to deliver on infrastructure, water and climate change projects.''

Federal Labor's election promise to immediately address critical skills shortages and deliver an education revolution in higher education needed to include cutting high tertiary fees.

''Exorbitant higher education fees provide short-term savings, but ultimately they deplete Australia's labour market, knowledge and capacity for innovation,'' Mr Walton said.

''Australian industry will continue losing the potential of students educated by our tertiary institutions until disincentives to working here are removed.''