6 June 2025

Sugar tax won’t solve obesity crisis while healthy options remain expensive and inconvenient

| Oliver Jacques
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man drinking soft drink

Taxing sugary drinks could be back on the menu in Australia. Photo: pexels.

As a fat man who identifies as skinny (trans-slender), I couldn’t help but shudder upon hearing that a sugar tax is again up for debate in Australia.

But the simple truth is that raising the price of soft drinks and/or confectionery won’t properly address the obesity epidemic unless something is done to make healthy alternatives cheaper and easier to access for low-income earners and those with busy lives.

A federal parliamentary inquiry into diabetes recommended the federal government impose a levy (they don’t like to say the word ‘tax’) on all sugar-sweetened beverages, including fizzy drinks, cordial, energy drinks, sports drinks, fruit drinks and even flavoured mineral waters.

Last week, Labor MP Mike Freelander told media that he supports a 20 per cent levy on these beverages, which would push the cost of a can of Coke up from $2 to $2.40 (although Health Minister Mark Butler says there are ‘no plans’ for the levy).

In addition to combating Type 2 diabetes, advocates for this reform argue it would reduce the 66 per cent of Australians who are considered overweight (the percentage figure, not their actual bodies).

A tax on sugary drinks already exists in several countries, including the UK, Ireland, Norway and Thailand.

Mexico has gone a step further and imposed an 8 per cent tax on junk foods such as chocolate and ice cream.

These nations see the tax as a win-win, as evidence suggests they have reduced consumption of unhealthy products, thus lowering pressure on the public health system while also raising revenue for the government.

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However, even if taxes were imposed on these products in Australia, in many cases, they would still be cheaper than the healthy alternatives.

At my local supermarket, mushrooms are $11 a kilo, lettuce are $3.50 each and eggs are $8 a dozen. It would cost more to buy the ingredients for a stir fry than to get a greasy MSG-packed version at my local Chinese restaurant, not to mention the time it takes to cook and wash up.

A recent study by the UK’s Food Foundation has found healthier foods cost more than twice as much as less healthy options at the supermarket. Moreover, the prices of more nutritious and less fattening products have increased at a significantly faster rate over the past two years.

The research also found that the most deprived fifth of British households with children would need to spend up to 70 per cent of their disposable income on maintaining a healthy diet. It would be a similar predicament for the most disadvantaged in Australia, where paying for skyrocketing prices of groceries is a huge challenge for families already spending half (or more) of their income on putting a roof over their head.

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Maintaining a balanced diet is also an issue for anyone who has a busy life and puts in long hours at work while raising a family. If you don’t have time to prepare dinner, takeaway may be the only option, but check your Uber Eats app and you’ll see unhealthy choices vastly outnumber healthy ones. If you find a high-quality salad, it generally costs upwards of $20.

Subsidising nutritious food to make healthy eating more affordable is a lot less common as a policy remedy across the world than taxing the sin foods. This is obviously because it costs the government money rather than making it revenue.

But if we truly want to reduce growing waistlines across Australia during a cost-of-living crisis, we need to consider the carrot as well as the stick.

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You started strong and then immediately veered into what you think is the same “unhealthy” ilk products.

No. Fact if the matter is there’s a reason why supermarkets devote a whole aisle to sugar drinks.
They don’t do it because want to make shelves look full.
They don’t do it because the profit per square meter matches… a 4 square meter display of “greasy Chinese food”, but across 60 meters.

Tighten up your britches, you can still saturate on thing that feel bad!
But sugar drinks don’t feel bad, that’s the whole flaming insidiousness of them!

Levy to offset the fats who overburden our healthcare (tried surgery when have to haul 60kg of fat out of the way) I support 100%.

Next up a tax on animal products.

People have a right to choose

“raising the price of soft drinks and/or confectionery won’t properly address the obesity epidemic unless something is done to make healthy alternatives cheaper”

Is there any reason to think this? Taxing the hell out of it worked for tobacco. Jack the price up until people just give up. And alternatives? Water is as cheap as can be. Nobody needs an alternative to soft drink – it is 100% an unnecessary luxury. Yes, it’s addictive, and breaking an addiction is tough. But again: tobacco.

Incidental Tourist6:56 pm 05 Jun 25

It’s a myth that healthy lifestyle costs more. It’s spread around by people who have no clue what it is. You can always buy season ingredients for your salad and prepare family supply for a week in advance. A bunch of Kale, salad bag, cabbage, carrot bag, lettuce, capsicums will cost around $30-$50 if you shop around. This is enough for a fresh salad for 2 adults and 2 kids for a week. When you switch from processed food to healthy diet your bill will not increase, as long as you are prepared to cook a bit. Try it! It’s fun too.

Excuse # 1- it’s too expensive. As to exercise you don’t need to spend much. Gym membership will cost you same per week as soft drink supply for the same week. Walking or cycling to work is free (unlike driving and parking). So excuse #2 – no time? Are you too busy or too lazy? Don’t tell me about kids. When you start cycling you’ll notice that there are many parents riding with small kids in the morning even during winter – so there is no “kids” excuse. Go on bike path intersection around McArthur avenue and read cycling counter showing hundreds trips daily even on a rainy day. Most office workplaces have nice end of trip facilities absolutely free. Excuse #3 – too far from work? You can walk to public transport and this is exercise too. You can take your bike on a bus or tram if the weather is bad or it’s too far. Excuse #4 too sick? Consult your doctor as to what you can do (as opposed what you can’t). The chances are that unless you are bound to the bed there are many activities you can do.

And remember one more thing about time. Paradoxically by spending more time on healthy lifestyle you will end up with more spare time than before.

@Incidental Tourist
Well said 👏

Leon Arundell3:28 pm 05 Jun 25

What a stupid argument. It’s like saying that speed limits don’t stop road deaths. A sugar tax won’t solve the diabetes crisis by itself, but it WILL make healthier options relatively cheaper.

chrisjeanemery1:32 pm 05 Jun 25

If a sugar tax is not effective why are the soft drink manufacturers spending millions to lobby against it?

Nanny state ideology at its finest.

What next, a tax on breathing ?

You have a point. If it’s bad for people – which it is – it should simply be illegal to sell it at all.

haha yeah the one trick pony of the descent into communism: tax it!

Just put narrower entry gates on the supermarkets and restaurants – if you’re too fat to fit through, you obviously have no to buy more food/drinks.

Trouble is that the brain doesn’t recognise sugar sweetened drinks as food- so the energy in them is excess to what it takes to make someone feel full. These beverages therefore lead to higher energy intake. As other comments note- water is free and people still need to eat- even if they are eating junk food, reducing energy intake from sugar sweetened drinks will help. Agree that it would be great to see subsidies for fresh foods, but if people buy in-season fruit and veg, take advantage of specials, cook from scratch and freeze or preserve excess it is quite possible to eat healthily within a budget. We do also need investment in cooking skills though- they make a huge difference.

Give me a break. Water is a cheap, plentiful alternative to sugary drinks, and in this country nearly everywhere has it coming ready to drink right out of the tap. I agree though, that food is a different matter.

Just drink water, heaps cheaper than sugary drinks and better for you. How about that for low income earners and people with busy lives.

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