AMA calls for sugar tax on soft drinks in federal election wishlist

The Australian Medical Association is calling for a sugar tax on soft drinks in a major pre-election push.

The peak body says the tax would help roll back a surge in chronic diseases linked to the intake of sugar-saturated beverages.

“Our entire health system is being impacted by rising rates of chronic disease,” AMA President Dr Danielle McMullen said.

“The political party that wins government has the opportunity to tackle obesity and chronic disease through a tax on sugary drinks, which would also boost the budget bottom line.”

The tax would be a specific excise tax based on the sugar content, set at 50c per 100 grams of sugar per unit of product, the AMA said.

AMA modelling suggests the tax would drive down annual sugar consumption by 2kg per person and raise $3.6bn in revenue over the forward estimates.

“Sugar-sweetened beverages, or sugary drinks, contain way too much sugar and Australians are drinking too much of them,” the AMA’s “sickly sweet” campaign states.

“There are 8–12 teaspoons, or 33–50 grams, of sugar in the average 375ml can of soft drink.

“This is more than the daily recommended amount of sugar in just one drink with almost no nutritional benefit.

“Frequent consumption of sugary drinks is associated with a range of health problems, such as poor dental health, as well as obesity, a major risk factor for chronic diseases like type 2 diabetes, heart disease, stroke, and cancer.”

Australia does not have a sugar tax in place, though some 108 countries have applied excise taxes on sugar-sweetened beverages.

The tax forms one part of a broader pre-election wishlist from the AMA.

The health professionals said more needed to be done to “fix” Medicare.

“The bulk billing funding announced by both major parties and included in the March budget will help address affordability issues for some who don’t currently qualify for bulk billing incentives but it is not a comprehensive solution to Australia’s growing chronic disease burden,” Dr McMullen said.

“The AMA’s Modernise Medicare campaign proposes a new seven-tier rebate structure to support patients to spend more time with their GP as part of a comprehensive approach to care, costing $4.5bn over four years.

“This will create a Medicare that provides more time, more care, and more health.”

The AMA also calls for a new national health reform funding agreement to end what it calls a “hospital logjam” and the establishment of a private health system authority.

The AMA claims the new independent authority, costed at $146.9m over four years, would drive “meaningful reform and ensure patients get real value from their private health insurance”.

“Australia needs a mechanism to ensure continual reform to the private system so it can adjust to changing demographics, introduce new models of care (including care in the community) and continually review our policy settings,” the AMA states.

“As an independent body, it would have the capacity, objectivity and expertise to ensure the system evolves as government policy intends, balancing the interests of patients, day hospitals, private hospitals, private health insurers, medical device manufacturers and doctors.”