The Australian Medical Association (AMA) has advocated for a tax on sugary beverages to address what it describes as a national obesity crisis. In its pre-budget submission, the AMA highlighted that obesity has now overtaken tobacco as the leading cause of preventable deaths in the country. They proposed a tax of 50 cents per 100 grams of sugar, which is expected to increase the price of a typical 375ml soft drink by 20 cents.
AMA President Dr Danielle McMullen expressed concern over Australia’s slow progress in implementing a sugar tax. She referred to successful measures in countries like the UK, France, Mexico, and several states in the US, where sugar taxes have led to reduced sugar consumption. Dr McMullen noted that despite years of advocacy, the government has yet to take decisive action, allowing obesity and related chronic health issues to worsen.
If left unaddressed, the AMA estimates that obesity could cost Australia’s healthcare system $38 billion over the next four years. Dr McMullen pointed out that excessive sugar contributes to serious health conditions such as diabetes, heart disease, and strokes.
The proposed tax is estimated to reduce annual sugar intake by 2kg per person, while simultaneously generating approximately $3.6 billion in government revenue over the upcoming years. This revenue could be allocated towards vital preventive health initiatives. Dr McMullen emphasised that preventing obesity is more beneficial from both health and economic standpoints than attempting to manage its consequences once it becomes entrenched.
In summary, the AMA is pushing for urgent government action to implement a tax on sugary drinks as part of a comprehensive strategy to combat obesity and its significant health ramifications in Australia.