Pricing measures for healthier diets

 

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Pricing policies can promote healthier diets by encouraging industry
to reformulate products and by influencing the purchase and consumption of
food and drinks.

Orange sugary drinks at a factory

A tax on sugary drinks companies

Taxes on sugary drinks companies are an effective tool to reduce sugar consumption and to encourage manufacturers to reduce sugar content. They can lead to benefits for all – including consumers drinking less sugar, increased revenue for governments to fund public health and an incentive for drink companies to create and market lower sugar products.

Taxes on sugary drinks have been implemented in more than 100 countries around the world, and evidence shows a drop in consumption of high sugar options following introduction in many countries.

Evidence base for a tax on sugary drinks companies

Why is a tax on sugary drinks companies a good idea in Australia?

Sugary drinks are the highest contributor to sugar consumption in the average Australian’s diet, this is highest among 18-29 year olds.

One way we can address this is to put a tax the companies that make sugary drinks. Sugary drinks companies can then either reduce the amount of sugar in their drinks to avoid or minimise the tax, or if they choose not to, the revenue can be used to fund practical things that make life healthier and cheaper for families. 

Sugary drinks taxes are now common around the world, in place in more than 100 countries. Research in many countries shows reduced consumption following introduction, and also shows they can encourage manufacturers to reduce the sugar content in their drinks.

Read more about the case for a health levy on sugar sweetened beverages in Australia.

Do other countries have taxes on sugary drinks?

More than 100 countries across the globe have implemented a tax on sugary drinks. Read about the effects these taxes have had on consumption and reformulation on the Obesity Evidence Hub.

How should a tax on sugary drinks be designed?

The design of a tax sugary drinks companies would need to consider, the type of tax, its target, the tax rate and how to use the funds raised. Public health organisations advocate for revenue from a tax to fund practical things that make life healthier and cheaper for families, and for a tax that is high enough to act as an inceptive for manufacuers to reforumlate their products.  Read more on how should an Australian tax on sugar sweetened beverages be designed?.

 

Pricing measures for healthier diets

GST free fruits & vegetables

Price subsidies on fruits and vegetables that reduce prices by 10–30% are effective in increasing fruit and vegetable consumption.

Australia is currently meeting international best practices in exempting fruit and vegetables from the goods and services tax, and we advocate for this to continue.

Less than 10% of Australian adults eat the recommended five servings of vegetables each day and around half do not reach the recommended two serves of fruit. Poor diet is a major contributor to disease and illness. Policy measures to encourage and facilitate better diets, including the consumption of fruit and vegetables, should be retained and supported. To read more, visit the Obesity Evidence Hub

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WHO consultation on draft guideline on fiscal policies to promote healthy diets

Fiscal policies, like a levy on sugar sweetened beverages, can influence purchasing behaviour and as part of a comprehensive set of measures to improve diets and reduce overweight and obesity in Australia. Read our submission on the World Health Organizations draft guideline for fiscal policies to promote healthy diets. Read our submission
Submission

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Protecting children from unhealthy food marketing 

Learn about protecting children from the processed food industry’s unhealthy food marketing.

Improving baby & toddler foods

Learn about improving the composition, labelling and promotion of ready-made foods for babies and toddlers to support good health.

Improving food labelling

Labelling of packaged foods should provide accurate information that enables consumers to make choices in line with dietary guidelines. Learn about our work to improve food labelling.

Pricing measures for healthier diets

Pricing measures can promote healthier diets through encouraging reformulation by industry and by influencing the purchase and consumption of food and drinks.

National & international strategies

Learn about the frameworks and strategies that play an important role in changing the food environment to better support healthier diets.