Today's Big Stories

Universities SA proposes working graduates pay tax toward free education

The CEO of Universities SA, Ahmed Bawa, has proposed that employed university graduates pay a graduate tax toward free higher education.

Bawa says new funding strategies are needed to implement the ideal free tertiary education system.

However, economist Xhanti Phayi says that working graduates already pay taxes and are often subject to student debt and repaying financial aid loans.

He suggests that it may be unethical to tax graduates, who typically earn the least, amid high unemployment rates in the country.

Phayi says it seems unfair to implement a graduate tax on former students who have never benefited from free education themselves.

Listen to the full conversation from The Midday Report with Stephen Grootes:

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"Govt funds rich flyers (i.e. SAA) at the cost of poor students. Blade Nzimande is misleading us. And no tax hikes are needed."