Bold push for new tax on soft drink, juices
Coinciding with National Diabetes Week, the Australian Medical Association has called for a new tax at a rate of 50c per 100g of added sugar, to be paid by beverage manufacturers.
Under the proposal, a standard 375mL of full-sugar Coke with 39.8g of sugar would incur a tax of 19.9c, while a 600mL bottle of Berry Ice Powerade would be hit with a 17.8c levy for its 34.8g of sugar.
Macarthur MP Michael Freelander, who is also a practising pediatrician, said a levy on sugar-sweetened beverages would encourage companies to put less sugar in drinks, however a tax should be considered alongside of broader education measures.
'I think that we owe it to the next generation to try and make sure they are healthier than our generation,' he told NewsWire.
'And what we're now seeing is children presenting with obesity and with type two diabetes. And we should not be seeing that.' The AMA has called for a new tax . NewsWire/ John Gass Credit: News Corp Australia
In 2024, costings released by the Parliamentary Budget Office and requested by Dr Freelander found a 20 per cent tax on sugar-sweetened beverages would boost revenue by more than $1.3bn in two years, however he said any policies should be trialled before further implementation.
Dr Freelander stressed education was the best way to improve public health outcomes.
These included town planning to ensure children could walk to schools and shopping centres and not fast food outlets, plus increased access to healthy food, like subsidies on 'certain forms of food'.
'We do now see lots of societal changes that are causing health problems and one of the issues is the access to highly processed foods,' he said.
'So it's not just about drinks, it's also about making people aware of the dangers of high calorie highly-processed foods.'
The Australian Medical Association have renewed calls for a sugar tax on sweetened drinks like soft drink, juice and cordials. Mike Freelander said he supported a levy on sweetened drinks but said a tax should be implemented alongside measures to boost public health. NewsWire/ Martin Ollman Credit: News Corp Australia
AMA Vice President Julian Rait said the sugar tax was the 'best chance' or reducing rates of obesity and chronic disease like type 2 diabetes.
He said the proposal would drive down consumption by 2kg per person and increase the budget bottomline by $3.6bn which could be 'invested in other crucial preventive health measures'.
He added that more than 100 jurisdictions have implemented a sugar tax, like the UK, France, Mexico and Ireland.
'For people at risk of developing type 2 diabetes, reducing sugar intake through swaps like drinking water over soft drinks can make a profound difference to their long-term health,' he said.
'Last year it was revealed the sugar content in popular soft drink Fanta had increased by 60 per cent, despite industry assurances that sugary drinks were being reformulated.'
Health Minister Mark Butler said Labor had ruled out a potential levy or tax, and said the government's priorities were on 'front-of-pack labelling' and working with companies to reduce the amount of sugar in foods.
'There is no plan in our government for a sugar tax. We're instead focusing on education and also working with food manufacturers to reduce the amount of sugar that they put into their products,' he said in late May after the federal election.
As it stands, health labels are administered by the Health Star Rating system which companies can voluntarily adhere to.
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