A Parliamentary Committee has recommended a sugary drink tax. The measure is one of several recommendations aimed at improving Australians’ health outcomes.
It comes more than a year after the Federal Government announced an inquiry into the causes of diabetes, “interrelated health issues between diabetes and obesity”, and its impact on the health system.
More than half the global population lives in a country where sugar-sweetened beverages are taxed, according to international financial institution the World Bank.
Background
About 1.5 million Australians have diabetes, a disease characterised by chronically elevated blood sugar levels.
Type 2 diabetes makes up 87% of all diabetes cases in Australia. It’s particularly high in disadvantaged areas and First Nations communities.
Two-thirds of Australian adults were overweight or obese in 2022, according to the Australian Institute of Health and Welfare. It measures obesity using the Body Mass Index (BMI), which was developed in the 1830s by a mathematician as a way to find the ‘average’ male body.
Committee recommendations
The committee made 23 recommendations aimed at lowering national diabetes and obesity rates.
It proposed a tax on sugary beverages, including soft drinks, energy drinks, and sports drinks, to discourage consumers from buying them. Alcoholic drinks wouldn’t be included.
The tax would be priced according to the sugar content of individual drinks, meaning beverages with the most sugar would become the most expensive. The tax would raise an estimated $1.4 billion over a four year period.
Labels
The committee also called for new food labelling standards to help consumers identify how much added sugar is in a product.
It found that labels like the health-star rating and nutrition information panel lacked clarity and detail.
Under current regulations, added sugar can appear under at least 40 different names on food labels, according to the Public Health Association of Australia.
It said this makes it hard for consumers to follow national dietary guidelines.
Junk food ads
The committee urged the Government to overhaul food advertising and marketing guidelines, particularly across media consumed by children.
A recent study by Deakin University found that children are exposed to dozens of junk food ads each day.
Concern about the promotion of ‘unhealthy’ food and drinks, including at the end of aisles and supermarket checkouts, was also raised.
Managing diabetes
The committee also made proposals to improve diabetes diagnosis and management strategies.
This included boosting access to longer, subsidised medical appointments for Australians with all forms of diabetes, and increased telehealth consultations.
The recommendations included improved access to type 2 diabetes medication in remote communities. A recent global shortage has impacted supplies of some of these medications, which include Ozempic and Mounjaro.
Sugary drink taxes worldwide
More than 100 countries have taxes on sugar-sweetened beverages, according to 2023 data from the World Bank.
Sugar taxes are most common in Africa, South Asia, Latin America, and the Caribbean.
The World Health Organisation called on all countries to introduce taxes on sugar-sweetened beverages in December 2022.
The proposed sugar tax was rejected by Committee members from the Coalition Opposition, who cast doubt over its effectiveness and were concerned it could increase financial strain for low-income earners.
Opposition
The Opposition supported all the Committee’s recommendations, except for the proposed tax on sugary beverages.
Coalition members cast doubt over its effectiveness, claiming the levy wouldn’t do enough to change consumer habits.
The Opposition also argued the tax would create more financial stress for low-income earners in disadvantaged communities.
Response
The Australian Medical Association (AMA) welcomed the Committee’s report and said it was “100 per cent behind” the proposed sugar tax.
The AMA also supported changes to food advertising and sugar-labelling regulations.
A spokesperson for Health Minister Mark Butler said the report “shines a light on a serious public health issue”.
The Government said it will “carefully consider” the report, and is expected to table its response before the end of the year.
