Former Aussie Treasurer tipped to become ambassador to U.S.

Former federal Treasurer Joe Hockey is being widely tipped to take over as Australia's Ambassador to the United States following his decision to resign from politics on Sunday.

Hockey was replaced as federal Treasurer by Scott Morrison in new Prime Minister Malcolm Turnbull's cabinet reshuffle over the weekend and tendered his resignation in a statement not long after.

However on Monday, Turnbull hinted at a new, out-of-parliament role for the man who spent two decades in Canberra, with many expecting Hockey to be given the post in Washington D.C.

"Joe has made a long and distinguished contribution to our nation's government and Parliament over many, many years for which I thank him," Turnbull was quoted as saying.

"I believe he has a further contribution to make in our nation' s service."

Former Labor leader Kim Beazley is due return to Australia at the end of the year following his successful, five-year stint in Washington.

The position, filled on recommendation of the prime minister, will be open from December this year. It is widely expected that Turnbull will offer the position to Hockey within weeks.

Hockey came under fire as Australia's Treasurer following a disastrous first budget in 2014, while his popularity took a further dive after a number of gaffes which included him telling Australians who could not afford a house in the nation's booming housing market to "get a better job".

Hockey also floated the controversial idea of raising Australia 's Goods and Services Tax (GST) and raised the importance of mitigating bracket creep while in charge of the nation's Treasury.

Hockey's departure from parliament will mean a by-election will be held in his safe Liberal seat of North Sydney. No date for such a by-election has been set. Endi