AUSactive calls for Federal budget to shift funding from reactive healthcare to prevention

In advance of tomorrow's Federal Budget and its expected focus on cost-of-living relief, AUSactive is urging Treasurer Jim Chalmers to shift funding from reactive healthcare to prevention, citing compelling new research.

AUSactive is highlighting that 60% of Australians are overweight or obese, 75% fail to meet physical activity guidelines and sedentary lifestyles are costing the economy $14.1 billion annually.

It also cites workplace burnout and mental health issues that are costs up to an extra $22.5 billion - including absenteeism and lost productivity.

In advance of the upcoming Federal election and commitments made by major parties to Medicare, AUSactive Chief Executive, Barrie Elvish (pictured below) is calling on urgent action from the next Federal Government, stating “the best investment is keeping people healthy in the first place.”

AUSactive’s landmark Reversing the Physical Inactivity Crisis: Fitness Affordability as Strategic Policy report - which was carried out across Sydney, Melbourne, Brisbane, Gold Coast, Perth and Adelaide - in partnership with the USA-based Health and Fitness Association and Portas Consulting, shows how a 10% reduction of fitness membership could drive $1.3B in annual health savings:

• $425 million in healthcare savings
• $913 million in productivity gains
• Attract up to 1.8 million additional Australians to fitness facilities and:
  o Deliver 31,300 new jobs and stimulate additional consumer spending of $1.5 billion
  o Prevent 59,000 disease cases and 377 deaths annually
  o 12,000 disability-adjusted life years saved
  o Improve life satisfaction for 269,000 Australians
  o A 2.7x return on every dollar invested in affordability initiatives

Elvish highlights that the Federal Government’s own research shows every $1 spent on preventive health saves $14.30 in healthcare and productivity costs, prompting Elvish to affirm that fitness affordability is a proven economic and health win.

He explains “for policymakers and other stakeholders, these findings provide an evidence base to reframe affordability as a public health intervention.

“By viewing price reductions as strategic investments rather than financial outlays, stakeholders can unlock substantial long-term benefits that improve public health, strengthen communities, and drive economic growth.”

AUSactive’s Active Body, Healthy Mind budget submission key policy solutions outline:

• Physical Activity Vouchers up to $1,000 to subsidise structured exercise in their preferred physical activity
• Fringe Benefits Tax (FBT) Reform to extend tax exemptions for employer-sponsored fitness and gym memberships to all workplaces, increasing productivity
• Increased Preventive Health Investment from 2% to 5% of the $124 billion health budget
• A National Preventive Health Campaign to drive exercise participation and deliver proven long term healthcare savings

Sydney University preventive health advocate and physician, Professor Luigi Fontana, also estimates focusing on prevention over treatment could save Australia $30 billion.

Elvish adds “exercise is a proven investment in national productivity, yet Australians face cost barriers and outdated tax policies discouraging workplace wellness.

“The Federal Government has a choice: keep pouring billions into treating preventable diseases, or invest in fitness affordability and unlock long-term savings. The evidence is clear - it’s time for a shift from reactive healthcare to prevention.”

In addition to highlighting its calls today, AUSactive has been making these representations to the Federal Government over recent months.

Main image credit: Shutterstock.