Australian health leaders call for health levy on sugary drinks

The Australian Medical Association is among leading Australian public health organisations calling for a 20% health levy on sugary drink manufacturers, with new research revealing the policy could reduce Australians’ annual sugar intake by 2.6 kilograms per person and raise billions of dollars for health initiatives.

The Australian Government is being asked to put the community first, following in the footsteps of more than 100 countries and jurisdictions that already have a health levy on sugary drinks. Success stories from places like the UK, South Africa and Mexico combined with a robust evidence base show that such a policy can make a real difference to diets and health here in Australia.

Members of the Rethink Sugary Drink alliance - including the Australian Medical Association (AMA), Cancer Council Australia, the Australian Dental Association, Food for Health Alliance, and Heart Foundation - launched a new position statement in Canberra on Monday urging the government to introduce the 20% health levy on sugary drink manufacturers.

AMA President Professor Steve Robson, Cancer Council Australia Chief Executive Professor Tanya Buchanan, Australian Dental Association Board Director Dr Angie Nilsson and Food for Health Alliance Executive Manager Jane Martin, held a press conference at Parliament House on Monday to launch the position statement.

Alliance members, including AMA President Professor Steve Robson and AMA NSW President Dr Michael Bonning, also briefed parliamentarians on the levy.

The statement is backed by new AMA research that found a 20% health levy on sugary drinks could raise around $1 billion each year, which could be used to fund crucial obesity prevention and other health initiatives.

Professor Robson shared “This policy really is a no brainer - it would raise vital funds for preventive health and protect Australians’ health by decreasing the risk of diseases linked to excess weight like heart disease, type 2 diabetes, stroke, and some cancers.

“Our modelling shows that a 20% health levy on sugary drink manufacturers could raise around $4 billion over four years. These funds could be invested into crucial health promotion campaigns, reducing pressure on our stretched health system.

“Research also shows there could be 4,400 fewer cases of heart disease, 16,000 fewer cases of type 2 diabetes, and 1,100 fewer strokes over 25 years if government takes this step.”

Cancer Council Australia Chief Executive, Professor Tanya Buchanan, explained that sugary drinks are energy dense but provide no nutritional value. Consuming more kilojoules than the body needs can lead to weight gain and obesity, a leading risk factor for 13 types of cancer.

Professor Buchanan adds “Importantly, we know a health levy encourages manufacturers to reformulate their drink products to contain less sugar, resulting in healthier beverages and better health outcomes.

“With the rate of obesity-related cancers in Australia increasing, we can no longer afford to wait.”

Dr Angie Nilsson, Federal Board Director at Australian Dental Association, added that over time the policy would also improve health equity and dental health in Australia.

“We know that just one 600mL bottle of soft drink can pack a shocking 16 teaspoons of sugar and is highly acidic. Frequently gulping down sugary drinks can increase the risk of issues including tooth decay, sensitivity and erosion.”

“Looking to countries that already have a health levy, like Mexico, it's clear that this policy can have a positive impact on population smiles as well as diets, with the greatest dental health benefits likely to be experienced by Australians from lower socio-economic backgrounds.”

Food for Health Alliance’s Executive Manager, Jane Martin, said that strong support exists at a community level for a health levy.

“We know Australians want to see change, with our research showing 77% would support a health levy on sugary drinks if the funds raised were reinvested into crucial obesity prevention efforts. Between this support and undeniable health and economic gains, what are we waiting for?”

Heart Foundation’s National Manager of Public and Local Affairs, Peter Thomas, said government action to address harmful sugar consumption would benefit Australians’ heart health, going on to say "healthier diets are key to reducing risk of heart disease, Australia’s number one killer.

"With sugary drinks currently the biggest source of sugar in our diets, a 20% health levy on companies who manufacture these products is urgently needed to protect our nation’s heart health,."

Click here to read the AMA’s report    

Click here to read the position statement