Aussie sugar tax: Soft drinks could be slapped with price hike to tackle obesity and diabetes crisis
A plan to tackle Australia’s obesity epidemic has come under fire for increasing the cost of living for families.
The federal government has proposed a whopping 20 percent “sugar tax” on all soft drinks in a desperate bid to tackle the country’s obesity and diabetes rates.
The tax would also apply to soft drinks, flavoured mineral water, energy drinks, sports drinks and fruit drinks.
The government has also proposed tougher new restrictions on junk food advertising aimed at children, both online and on gaming platforms.
But the plans have been questioned by opposition spokeswoman Senator Anne Ruston.
“There are better ways to promote healthy eating and better preventive health outcomes without further burdening the pockets of Australian families who are in the midst of a cost-of-living crisis,” she told the Herald Sun.
Under the government’s proposal, a tax would be levied on drinks based on their sugar content.
By levying the tax, it is hoped that producers will reduce the amount of sugar in drinks and that this will be healthier for consumers.
The federal government has proposed a sugar tax on all “sparkling” beverages, as well as all non-alcoholic beverages sweetened with sugar, such as fruit juice and lemonade.
According to the Parliamentary Budget Office, the tax would also be a lucrative source of revenue for the government: if set at 20 percent, it would bring in almost $6.8 billion for the government over the past decade.
The government also expects demand for more expensive drinks to fall by a fifth.
Commission Chairman Dr Mike Freelander said that while the sugar tax would increase the price of drinks, it would not be applied to other food products.
Dr Freelander said the commission has not yet determined how much tax should be paid and will consult with manufacturers.
The sugar tax and other recommendations were needed, Dr Freelander argued, because children under the age of 10 were being diagnosed with diabetes and it was ‘critical to avert a health emergency’.
“This is an important public health measure. We have the support of all major health organisations in the country and the recommendations should be taken as a whole,” the GP said.
‘It will only apply to drinks that are sweetened with sugar. I don’t think it should be extended to other things, we should use best practices around the world and the effects will be monitored.’
More than 100 countries currently levy a sugar tax
Research has shown that if a government imposes a 10 percent tax, it leads to an 8.2 percent price increase for consumers.
The committee made a series of recommendations, including access to national screening programs for both types of diabetes and giving Australians greater access to weight loss surgery.
Juanita Pope, chief executive of the Victorian Council on Social Services, said that if implemented correctly, the tax would have a small impact on the budgets of low-income families. But in the long term, the health benefits and savings on medical costs would be enormous.