Sugar showdown: Australia weighs tax on sweetened beverages to fight diabetes

05 Jul 2024 --- An Australian parliamentary committee report on the prevalence of diabetes mellitus in the country requests that the government implement several reforms to curb non-communicable diseases’ (NCDs) effects on Australian citizens. The committee recommends the government require products to clearly show added sugar amounts on front-of-pack (FoP) labels.

It also asks the government to consider regulations that inhibit the marketing and advertising of sugary products to children and requests a tax be placed on sugary beverages.

The Australian Medical Association (AMA) says it welcomes the recommendations. It notes that the reformations could help prevent obesity and raise funds to help tackle chronic disease and NCDs.

“A sugar tax would have a huge impact on Australia’s health system and the AMA’s modeling suggests a sugar tax could result in government revenue of AUD$4 billion (US$2.69 billion) across four years, which could be used to fund further preventative health activities,” says Professor Steve Robson, president of the AMA.

“We are 100% behind this sugar tax on sugar-sweetened beverages because we know it could help reduce the prevalence of type 2 diabetes in Australia, as well as reducing other chronic diseases. Prevention is better than cure and this inquiry has realized we need to be ahead of what is a national health crisis.”

A growing problem
According to Diabetes Australia, an organization that administers the government’s National Diabetes Services Scheme , 300 Australians develop diabetes every day. Moreover, type 2 diabetes makes up 85-90% of new cases annually. It stresses that as much as 60% of all cases of type 2 diabetes can be delayed or prevented through diet and lifestyle changes.

While the committee conducted its investigation into diabetes in the country, the AMA went before the committee and asked them to consider the sugar tax to stem the tide of chronic diseases, such as type 2 diabetes.

The association reveals that research shows a sugar tax could result in 16,000 fewer cases of type 2 diabetes, 4,400 fewer cases of heart disease and 1,100 fewer cases of stroke over a 25-year period.

“Our modeling shows we can prevent thousands of cases of diabetes if we act,” Robson emphasizes. Australians drink at least 2.4 billion liters of sugary drinks every year with the average 375 ml can of soft drink containing about 12 teaspoons of sugar.”

“We know sugar-sweetened beverages are a major contributor to the obesity crisis and provide almost no nutritional benefit. It’s astounding that Australians are drinking at least 2.4 billion liters of sugary drinks every year. That is enough to fill 960 Olympic-sized swimming pools. The evidence shows sugar taxes are effective, with more than 100 countries and jurisdictions implementing some form of tax on sugary drinks.”

FoP clarity and advertising regulations
Another recommendation supported by the AMA is the call to reform and regulate the advertising and marketing of unhealthy foods, especially to children. Robson states that enacting an online marketing ban could help establish healthy food consumption habits at a young age.

“Eating habits start young, when kids are highly susceptible to marketing ploys,” Robson explains. “Limiting junk food advertisements and marketing is about nurturing health in our children, providing them with the opportunity to make healthy choices well into adulthood.”

The AMA also touted the committee’s recommendation for food labeling reforms.

“Obesity and its health consequences is everyone’s issue,” Robson concludes. “It is a national epidemic, and these are welcome first steps to improving health outcomes for Australians.”

By William Bradford Nichols