This was published 8 years ago
Election 2016: Greens call for 20 per cent 'sugar tax' on drinks
By Michael Koziol
The Greens will today call for a blanket 20 per cent "sugar tax" on soft drinks to tackle obesity, a measure estimated to collect $500 million a year.
The move, which would add about 20 cents to the supermarket price of a can of Coca-Cola, could lead to a fall in consumption of 12 per cent, according to research cited by the Greens.
Globally, the push to tax sugary drinks has been led by British celebrity chef and healthy eating ambassador Jamie Oliver, who in March challenged Australia to "pull your finger out" and back the tax.
"The Australian Greens accept that challenge," said the party's leader, Richard Di Natale, who will make his case for the tax at an obesity summit at Sydney University on Wednesday.
'Challenge accepted': Greens leader Richard Di Natale has swung his party's support behind Jamie Oliver's sugar tax.Credit: Eddie Jim
An academic paper referenced by the Greens estimated a 20 per cent levy would reduce the number of new type 2 diabetes cases by about 800 a year.
In 25 years, there would be 4400 fewer prevalent cases of heart disease and 1100 fewer people living with the consequences of stroke, according to the paper.
"The sweetest part of this policy will be the longer-term benefits to Australians by reducing chronic disease and achieving better health outcomes," Senator Di Natale said.
Britain's Conservative government introduced a sugar tax earlier this year, to apply from 2018 at two separate rates, depending on the sugar content of the drink.
More jurisdictions are pursuing sugar taxes in an attempt to discourage consumption of sugary drinks.
But the Greens' favoured model goes further, imposing a flat 20 per cent excise to be paid by producers or importers based on the retail price of the product. It would apply to all water-based beverages with more than five grams of sugar per 100ml.
A spokesman for Rural Health Minister Fiona Nash told Fairfax Media there was "zero chance" the Turnbull government would go near the idea, which was "a lazy solution to a complex problem".
Celebrity chef Jamie Oliver called on Australia to "pull your finger out" and tax sugary drinks.
Labor reportedly sought advice on the economics of a sugar tax but shadow treasurer Chris Bowen has since said he has "no plans" to pursue it.
But both major parties have agreed to raise tobacco excise by 12.5 per cent a year for four years in an attempt to raise revenue and discourage smoking.
In 2014, Mexico introduced a sugar tax, which was shown to have significantly reduced the consumption of sugary drinks in that country, according to analysis published in the British Medical Journal.
The World Health Organisation also advocates a sugar tax in its report Ending Childhood Obesity, citing the potential to change the purchasing decisions of low-income earners.
The independent Parliamentary Budget Office estimated the measure would raise $2 billion over four years, which Senator Di Natale said should be spent on public health and be accompanied by restrictions on junk-food advertising.
