20c extra on every can of soft drink: Doctors' radical tax to fight obesity
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Australia’s peak doctor organisation has called for a tax on sugary drinks to curb what it calls a national obesity crisis.

In its pre-budget submission, the Australian Medical Association warned that obesity had overtaken tobacco as the major cause of preventable death in Australia.

The body wants a tax on sugar-sweetened beverages at a rate of 50 cents per 100 grams of sugar, which would raise the price of an average 375ml can of soft drink by 20 cents.

The AMA is calling for a tax on sugar-sweetened drinks. (Getty Images/iStockphoto)

AMA president Dr Danielle McMullen said Australia was “so far behind the eight ball, it’s not funny” on taxing sugar.

“The United Kingdom, France, Mexico, Chile, Catalonia in Spain, several states in the US – these are just a few of the jurisdictions where sugar consumption dropped after a sugar tax was implemented,” McMullen said.

“We have been pushing for a tax on sugary drinks for many years, but governments keep kicking the can down the road, all while Australia’s issues with obesity and chronic disease become worse and worse.”

McMullen said obesity would cost Australia’s health system $38 billion in the next four years if no action was taken.

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Where Australia ranks in countries with the greatest health freedoms

It contributes to diabetes, heart disease, and stroke, among other dangerous and deadly conditions.

“Our proposal for a tax on sugary drinks would drive down annual sugar consumption by 2kg per person, while raising $3.6 billion in government revenue over the forward estimates – funds that could be invested in crucial preventive health measures,” McMullen said.

“From both a health and an economic perspective, it is far better to prevent obesity in the first place than manage it once it is entrenched.”

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