We Can’t Tax Our Way Out of Obesity

The recent push for a sugar tax in Australia has sparked fresh debate, but it sidesteps the fundamental issue driving our obesity crisis.

A federal parliamentary inquiry into diabetes has recommended imposing a levy on sugar-sweetened beverages, including soft drinks, energy drinks, sports drinks, and flavored waters. Labor MP Mike Freelander recently endorsed a 20 percent levy that would increase a can of Coke from $2 to $2.40, though Health Minister Mark Butler maintains there are no current plans for implementation.

Proponents argue this measure would combat Type 2 diabetes and address the fact that 66 percent of Australians are overweight. They point to successful implementations in the UK, Ireland, Norway, and Thailand, while Mexico has extended taxation to include junk foods like chocolate and ice cream. These countries report reduced consumption of unhealthy products alongside increased government revenue.

However, the core problem remains unaddressed: healthy food is prohibitively expensive and inconvenient for many Australians. At local supermarkets, mushrooms cost $11 per kilogram, lettuce $3.50 each, and eggs $8 per dozen. Purchasing ingredients for a home-cooked stir fry often costs more than ordering a ready-made version from a restaurant—without considering preparation and cleanup time.

Recent UK Food Foundation research reveals that healthier foods cost more than double the price of less nutritious alternatives. Nutritious options have also experienced faster price increases over the past two years. The study found that Britain’s most disadvantaged households with children would need to spend up to 70 percent of their disposable income to maintain a healthy diet.

Australian families face similar challenges, with grocery costs soaring while many already dedicate half their income to housing. Even with sugar taxes, unhealthy options would often remain the more affordable choice.

Without addressing the cost and accessibility of healthy alternatives, sugar taxes alone cannot solve our obesity epidemic.

The Convenience Factor in Healthy Eating

Time-pressed families juggling work and childcare face additional barriers to healthy eating. When there’s no time for meal preparation, takeaway becomes the default option—but a quick scan of delivery apps reveals the stark reality. Unhealthy choices dominate the menu, while quality salads typically cost upward of $20.

The Policy Imbalance

Globally, governments favor taxing unhealthy foods over subsidizing nutritious options—a preference driven by fiscal considerations rather than health outcomes. Sin taxes generate revenue, while food subsidies require government expenditure.

A Balanced Approach to Australia’s Health Crisis

During Australia’s current cost-of-living pressures, addressing expanding waistlines demands both incentives and disincentives. Rather than relying solely on punitive measures, policymakers should embrace a comprehensive strategy that makes healthy choices both affordable and accessible.

The solution isn’t just about discouraging poor food choices—it’s about making better ones economically viable for all Australians.

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