Federal Government Urged to Implement 20% Tax on Unhealthy Foods
The federal government is facing calls to introduce a significant 20 per cent tax on a range of unhealthy food items, including soft drinks, confectionery, biscuits, pastries, ice cream, and processed meats. The proposed policy would involve redistributing the generated revenue to substantially reduce the cost of healthy foods, such as fresh fruits and vegetables, for consumers across the nation.
Modelling Predicts Major Health and Economic Benefits
According to comprehensive modelling conducted by the George Institute for Global Health, this combined tax-subsidy approach could avert approximately 212,000 premature deaths linked to diabetes and cardiovascular diseases. Over the lifetime of the current adult population, this intervention is projected to save an impressive $15 billion in healthcare costs, alleviating pressure on the public health system.
Furthermore, the research indicates that using the tax revenue to subsidise fruits and vegetables could prevent an additional 45,000 deaths and 191,000 cases of type 2 diabetes. The study found that this broader unhealthy food tax, which would cost the average Australian an extra $140 annually, would be seven times more effective than previously advocated soft drink taxes alone.
Addressing Australia's Dietary Crisis
Lead researcher Tazman Davies emphasised the potential impact, stating, 'Using a combined tax-subsidy package could tilt the playing field in terms of food prices and help improve our diets in Australia.' The proposal comes amid concerning statistics: only four per cent of Australian adults consume the recommended amount of fruit and vegetables, while two-thirds are classified as overweight or obese.
Rather than advocating for a universal subsidy, Mr Davies suggested it would be more feasible and equitable to target measures at lower-income Australians. This demographic faces the highest impact from the tax but bears the greatest burden of diet-related diseases due to existing structural inequalities.
Proposed Targeted Support Measures
The research outlines several targeted support options that could be implemented alongside the tax:
- Expanding the Low Cost Essentials Subsidy Scheme, where the government caps the cost of certain goods in remote Indigenous communities.
- Enhancing school feeding programs to ensure children have access to nutritious meals.
- Introducing healthy food vouchers for eligible families.
- Establishing prescriptions for healthy food, where food-insecure individuals could receive prescribed healthy options from a doctor.
Building Momentum for Policy Change
While Mr Davies conceded the likelihood of the government adopting the proposal in the near term is low, he described it as an excellent conversation starter. He noted that more than 100 nations have already implemented varying taxes on junk food, creating growing international momentum.
'The momentum is building, and that will continually put pressure on Australia to consider similar policies,' Mr Davies stated, highlighting the global shift towards addressing nutrition through fiscal measures.
Government's Current Approach and Comprehensive Strategy
A spokeswoman for Health Minister Mark Butler confirmed that the federal government is currently working with the processed food industry to reduce sodium, sugar, and saturated fat content across a range of products. Additionally, fruit, vegetables, and other core foods have been exempted from the GST.
Food ministers are also considering preparations for mandating the health star rating system on food packaging. However, Mr Davies urged a more comprehensive nutrition strategy, arguing that taxing unhealthy items alone would not be a silver bullet.
He advocated for a multi-faceted approach that includes mandating the health star rating system, restricting junk food advertising, and implementing limits on sugar and salt content in processed products. This holistic strategy aims to create a healthier food environment and reduce the burden of diet-related diseases on Australian society.
