Over 100 countries around the world have successfully implemented a sugar-sweetened beverage tax, and yet Australian governments continue to resist.
A sugar tax is back on the election table, at least if the Australian Medical Association has its way.
The doctor lobby group released the third part of its pre-budget submission – Sickly sweet – today, calling for a tax on sugar-sweetened beverages at a rate of 50c per 100g of sugar.
The tax would raise the price of an average 375ml can of soft drink by 20c, creating what the AMA called a “strong incentive” for beverage manufacturers to reformulate their products to contain less sugar.
“Australia’s obesity crisis will cost the health system $38 billion over the next four years if nothing is done,” said federal AMA president Dr Danielle McMullen.
“But here’s the good news for the major political parties ahead of an election: there is a tried, tested and easily implemented policy that can significantly curb the prevalence of obesity, type 2 diabetes, heart disease and stroke.
“Our proposal for a tax on sugary drinks would drive down annual sugar consumption by 2kg per person, while raising $3.6 billion in government revenue over the forward estimates — funds that could be invested in crucial preventive health measures.”
It’s a policy that has been proven effective in other countries and that Australian governments have been resisting for a decade.
“Australia is so far behind the eight ball, it’s not funny,” said Dr McMullen.
“The United Kingdom, France, Mexico, Chile, Catalonia in Spain, several states in the US — these are just a few of the jurisdictions where sugar consumption dropped after a sugar tax was implemented.”
In fact, 108 countries have instituted a sugar-sweetened beverage tax.
“We have been pushing for a tax on sugary drinks for many years, but governments keep kicking the can down the road, all while Australia’s issues with obesity and chronic disease become worse and worse.
“We have a much healthier, and much cheaper, alternative we must encourage people to drink instead — water.”
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The AMA estimates that Australians drink 2.2 billion litres of sugar-sweetened beverages per year.
In June of 2024, the House of Representatives through the Standing Committee on Health, Aged Care and Sport released a report on the State of Diabetes Mellitus in Australia in 2024. The report included Recommendation 4 for a proposal for a sugar tax:
“… the Australian government implements a levy on sugar-sweetened beverages, such that the price is modelled on international best practice and the anticipated improvement of health outcomes. The levy should be graduated according to the sugar content.”
Despite this recommendation, no legislation has been passed by the parliament.
“Australian surveys have consistently shown majority support for a tax on sugar-sweetened beverages,” said the AMA’s submission.
“Public support is even higher if tax revenue is hypothecated to fund initiatives to tackle obesity.
“A nationally representative survey undertaken in 2017 found 60% of Australians support a tax on sugary drinks. This increased to 77% support if the proceeds were used to fund obesity prevention.”