So why focus on sugar sweetened soft drinks?

Chronic diseases are huge contributors to the burden on our health system.

Sugary drinks — and in particular those which have little or no nutritional value — fuel this problem.

These drinks are making us sick.

Exactly how much does all this cost us?

In Australia, the total economic cost of overweight and obesity was estimated at $39 billion, or 1.9 per cent of GDP, in 2019. This figure is projected to rise to more than $62 billion by 2030, and more than $228 billion, or 3.5 per cent of Australian GDP, by 2060. From a health perspective, it is far better to prevent obesity in the first place than attempt to manage it once established. Over the four-year period (2026–27 to 2029–30), this would translate to government revenue of $3,463 million. More importantly, it would reduce sugar intake from sugar-sweetened beverages by about 2.2 kilograms per person per year. The rate of tax per 100g of sugar is indexed at an assumed 2.5 per cent between 2026–27 and 2029–30.

A systematic review of worldwide costing studies estimated that people living with obesity have medical costs that are approximately 30 per cent greater than their healthy weight peers.

So, this is why you want a tax?

If we considered even a modest tax, and just on sugary drinks with no nutritional value — 20 per cent on the average supermarket sugary drink — over a 25 year period we’d have 16,000 fewer cases of type 2 diabetes, 4,400 fewer cases of heart disease and 1,100 fewer cases of stroke.

It could save lives and save millions of dollars in healthcare costs at the same time.

So, how much money would a tax make?

We estimate the tax would generate up to $900 million annually — which we believe could be spent on other preventative health activities.

The main aim however is to drive down consumption of these drinks with high sugar content as opposed to raising revenue.

Ah, but people don’t like taxes!

Turns out, if it’s for sugary drinks, they do!

Surveys have consistently shown majority support for a tax on sugary drinks, and support grows even further if the tax funds initiatives to tackle obesity — just like the one we are proposing.

In fact, a nationally representative survey undertaken in 2017 found 60 per cent of Australians support a tax on sugary drinks. This increased to 77 per cent support if the proceeds were used to fund obesity prevention.

Ok, I’m sold. Why doesn’t the Australian government do something?

More than 130 countries and governments around the world have done it.

And then last year, the Australian House of Representatives Standing Committee on Health, Aged Care and Sport did a detailed report into diabetes, and made this recommendation that:

“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"

Other key health groups – from Grattan to the Rethink Sugary Drinks Alliance also agree with the AMA that a sugar tax is needed!

But the Australian Government hasn’t acted as they don’t think people would support a policy to lessen the impact sugary drinks have on our health and health system!

The only way we can convince them, is by telling them and for that we need you!

Ok, so what can I do?

Join our campaign – our social media on your channels, and to your MP from our website. Make sure your voice is heard!