In a paper released yesterday, the Australian Medical Association (AMA) called for a tax on sugary drinks in a bid to reduce Australia’s obesity problem. However, both the Coalition and Labor rejected the call. Here’s the AMA’s view via 9News:
“You wouldn’t dream of putting 15 teaspoons of sugar in your tea or coffee,” AMA president Doctor Michael Gannon told 9NEWS today.
“But that’s what is hidden inside these drinks”…
“Sugar is being consumed by many Australians (and) is making them unhealthy,” Dr Gannon said.
“There is potentially a great value in the deterrence that taxation will afford.”
And here’s the response from the Coalition, via The AFR:
“We do not support a new tax on sugar to address this issue,” a spokesman for Health Minister Greg Hunt told AAP on Sunday.
“Unlike the Labor party, we don’t believe increasing the family grocery bill at the supermarket is the answer to this challenge.”
Federal deputy opposition leader Tanya Plibersek too conceded the federal government should help tackle the “obesity epidemic” in the country but stopped short of supporting the tax.
“We don’t have a plan for sugar tax at the moment,” she told reporters in Sydney on Sunday.
The arguments for limiting sugar in beverages are strong.
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The Grattan Institute’s report entitled A sugary drinks tax Recovering the community costs of obesity showed that more than one in four Australian adults are classified as obese – up from one in ten in the early 1980s – whereas 7% of Australian children are now obese:
In addition to personal costs, Grattan showed that obese people receive more healthcare than other people, with taxpayers funding most of the costs of those services at a cost of around $5.3 billion in 2014-15:
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.