Modern Australian
Times Advertising

We showed a 20% tax on junk food would save more lives than a sugar tax

  • Written by Tazman Davies, PhD Candidate, Food Policy, George Institute for Global Health
We showed a 20% tax on junk food would save more lives than a sugar tax

Every Australian shopper knows the pull of cheap junk foods lining supermarket shelves. Meanwhile, the cost of fresh fruit and vegetables continues to climb.

So it’s little wonder conditions such as obesity and type 2 diabetes are so common, and Australia’s health-care system struggles to cope.

But what if policies could help level the playing field? And what would that mean for our health, and health-care expenditure?

Our new research, published today in The Lancet Public Health, estimates a 20% tax on unhealthy foods could prevent 212,000 premature deaths and save A$14.9 billion in health-care costs over the lifetimes of Australian adults alive today.

We estimated the health impact could be even greater if the tax revenue is used to subsidise fruit and vegetables.

What we did

By “unhealthy foods”, we mean sugary drinks, lollies, salty snacks, biscuits, pastries, processed meat and ice cream. These are the kinds of foods the Australian Dietary Guidelines says we should limit for optimal health. Yet most Australians find them hard to resist.

We modelled how taxing these foods by 20% could shift the type of food Australians buy. This could be a 20% tax on the retail price or a 20% tax applied at the point of manufacture (an excise tax). But our modelling didn’t specify the type, just that the price would increase by 20%.

We also modelled the knock-on effects on weight, blood pressure and chronic disease over the lifetimes of adults aged 20 or greater in Australia.

We then estimated what would happen if we used that revenue to subsidise fruit and vegetables, and any extra health benefits this would have.

We also looked at how these impacts could differ for households across the socio-economic spectrum – from the poorest 20% to the richest 20% – to see how taxes and subsidies might affect people in different financial situations.

What we found

We estimated the 20% tax could cut purchases of unhealthy foods by about 8–26% depending on the category.

This could lead to 660,000 fewer cases of type 2 diabetes and 787,000 fewer cases of heart disease over the remaining lifetimes of Australian adults alive today. In turn, this could prevent about 212,000 premature deaths.

The economic returns could be substantial. We estimated a total reduction of $14.9 billion in health-care costs. That’s a health-care cost saving of $781 per adult over their lifetime.

While the average Australian could pay about $139 more in tax each year, the policy could help make Australia fairer: low-income Australians could experience roughly 76% greater health benefits than high-income Australians. This is because low-income Australians bear the greatest burden of diet-related illness and could see the largest reductions in purchases of unhealthy foods.

So this measure would ease the unequal burden of obesity, diabetes and heart disease on those affected the most.

The revenue raised could also be enough to reduce the average cost of fruits and vegetables by 19–26% across the population. This could ease cost of living pressures, avert 194,000 more cases of heart disease and prevent an additional 45,000 premature deaths.

Implementing the tax and subsidy together would also come at no net cost to the government.

How does this compare to a sugar tax?

You might have heard about proposals for a “sugar tax” that taxes sugary drinks. It’s an approach the World Health Organization endorses.

But we estimated extending these taxes to unhealthy foods more broadly could deliver around seven times the health benefits.

Similarly, the tax-and-subsidy package we modelled could have a greater impact than mandating the Health Star Rating, restricting junk food advertising, reducing harmful ingredients in products (such as salt), or running a national healthy eating campaign.

This doesn’t mean the tax-and-subsidy package alone will fix the enormous personal and health-care costs of unhealthy diets in Australia. But our findings reinforce its potential to be a powerful policy lever the government should consider.

After all, we know price is a strong driver of the foods we buy.

What now?

Australian politicians are debating a tax on sugary drinks. This is a great start, but our findings suggest Australia should consider a broader system of taxes and subsidies for much greater impact.

Public support for such measures is strong. Around 53% of Australians support a tax on unhealthy foods, rising to around 72–74% if the revenue is used to subsidise fruit and vegetables.

The subsidies could be delivered through existing avenues. These include using vouchers, via school programs, retail subsidies in First Nations communities, and healthy food prescription programs.

Advocacy from health and community groups could help drive policy uptake. In Colombia, such sustained advocacy led to the introduction of a 20% tax on unhealthy foods. Evidence suggests this is improving population diets without affecting jobs in the food industry.

Australia has navigated similar debates before. Tobacco taxes, once controversial, have contributed to large reductions in smoking while funding initiatives such as the Victorian Health Promotion Foundation.

Given unhealthy diets and being overweight now drive more chronic disease than smoking, we should be considering equally sensible measures – including food taxes and subsidies – to help Australians act on their best intentions at the supermarket.

Authors: Tazman Davies, PhD Candidate, Food Policy, George Institute for Global Health

Read more https://theconversation.com/we-showed-a-20-tax-on-junk-food-would-save-more-lives-than-a-sugar-tax-277965

What Actually Adds Value to Properties in Newcastle

Newcastle has seen steady growth over the past few years, with more buyers looking beyond Sydney for lifestyle, space, and long-term value. As dema...

What is Design and Build in Construction?

Imagine you’re about to start a new construction project, maybe it’s a custom home or a commercial building. You’ve got the idea, the land, an...

Commercial roof leak detection: why early action protects your building

Water ingress is one of the most disruptive and costly issues facing commercial properties. For property managers and facilities teams, even a minor...

Custom Photo Frames: Turning Everyday Moments into Lasting Displays

Photos capture moments, but how you display them determines how they’re experienced every day. A meaningful photograph deserves more than a generi...

Managed IT Services: A Smarter, More Predictable Way to Run Your Business Technology

If you’ve ever had your systems go down in the middle of a busy day, you’ll know how quickly things can unravel. Phones stop ringing, emails sto...

Landscaping Geelong — Coastal Elegance Meets Practical Design

A Landscape Shaped by Location Geelong occupies a unique position within Victoria’s broader landscape. It carries the energy of a growing city, y...

Electric Adjustable Beds: A Simpler Way To Sleep Better

Sleep should feel natural. It should come easily, without discomfort, without constant repositioning, and without waking up feeling sore. But for ma...

Healthy Snacking Sorted: Premium Beef Jerky

In today's fast-paced world, finding a snack that's both satisfying and genuinely good for you can feel like a mission. Many readily available optio...

What to Know Before Getting Dental Implants: A Guide for First-Time Patients

Dental implants Perth patients often look for a long-term solution for missing teeth without the hassle of dentures or bridges. If you are thinking ...

Why Protective Packaging Matters More Than Ever In Modern Shipping

In today’s fast-paced world of logistics and eCommerce, ensuring that products reach customers safely is a top priority. This is where a bubble wrap...

Pest Control Albury: Protecting Your Property From Hidden Damage And Health Risks

Pests rarely announce their arrival. They creep into spaces quietly, turning small, unnoticed corners into breeding grounds for bigger problems. Tha...

Why Root Canal Treatment Melbourne Is Essential For Saving Natural Teeth

Tooth pain has a way of demanding attention at the worst possible time. When the discomfort becomes persistent and intense, it often signals an infe...

How Bird Flight Diverters Help Protect Wildlife Around Power Infrastructure

Power infrastructure plays an essential role in modern life, but it can also create risks for wildlife, particularly birds moving through establishe...

What Businesses Should Look for in a Commercial Coffee Partner

Choosing a commercial coffee partner is not the same as choosing a machine. It is a broader decision that affects beverage quality, staff efficiency...

3PL Logistics Australia Driving Smarter Supply Chains And Faster Deliveries

In a world where customers expect speed almost as much as quality, logistics has become the silent heartbeat of every successful business. Behind th...

Why Professional Electrical Services Are Essential For Modern Properties

Electricity powers almost every aspect of daily life, from lighting and appliances to complex systems in homes and businesses. This makes choosing a...

What Not to Pack When Moving: The Essential Guide to Smart Packing

Moving house is one of those all-encompassing events in life and most people focus their energy on deciding what to pack. But knowing what not to pa...

From Assistance to Independence: Progression in Daily Living Skills

The ultimate goal of many support systems is to empower individuals to lead lives defined by autonomy and self-reliance. While some support requiremen...