A coalition of leading health and economic experts is urging the Australian government to implement a 20% tax on unhealthy food and drink items. The proposal, detailed in a report by the Obesity Policy Coalition and Deakin University's Global Obesity Centre, aims to address the nation's growing health and economic burden from diet-related diseases.
The modelling study, released in March 2026, estimates that over the next 25 years, such a tax could prevent approximately 210,000 cases of heart disease, stroke, and diabetes. The researchers project this would save the healthcare system around $3.4 billion and generate significant tax revenue that could be reinvested in public health initiatives.
The proposed tax would target products high in sugar, salt, and saturated fat, including sugary drinks, confectionery, and processed snacks. Public health advocates argue the measure is necessary to reduce consumption and incentivize food manufacturers to reformulate their products. The federal government has not yet committed to the policy, stating it is under consideration as part of a broader national obesity strategy.
