A federal parliamentary committee has put forward a controversial plan to implement a 20 per cent sugar tax on junk food and sugary drinks.
This move aims to address the diabetes epidemic impacting Australia’s health system.
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The proposed tax would apply to non-alcoholic water-based beverages with added sugar, such as soft drinks, cordials, energy drinks, sports drinks, fruit drinks, and flavoured mineral water.
However, the proposal has sparked debate, with some Coalition members arguing the potential impact on low-income families.
Liberal MP Julian Leeser said: “I wasn’t convinced a tax on sugary drinks would change people’s behaviour.”
In Australia, the diabetes rate continues to rise, with 1.5 million people currently living with the condition.
The committee also recommended expanding subsidies for continuous glucose-monitoring technology and removing age restrictions for type 1 diabetes patients.
The World Health Organization has advocated for levies on sugary drinks, and health officials have presented strong evidence of the benefits for dental health.
Labor MP and committee chair Mike Freelander said: “The environments we live in promote unhealthy habits”.
“We need to restrict the availability of marketing of unhealthy food and beverages, especially to children.”
Despite opposition from some members, the Parliamentary Budget Office estimated the tax could generate $1.4 billion in revenue over four years.
The committee also called on the Albanese government to regulate the marketing and advertising of unhealthy food to children under 16 across various media platforms.
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