Tax will cut sugar

Burden not great

DEAKIN University researchers have debunked the myth that a potential sugar tax would unfairly affect disadvantaged groups.

A study, released today by the university’s Global Obesity Centre, reveals those in Australia’s lowest socio-economic group would receive the greatest health benefits from the tax, and the extra cost due to the increased price of soft drinks would be only $5 more than the highest socioeconomic group per year.

Lead author and Deakin PhD candidate Anita Lal said the study showed a sugarsweetened beverage tax could save $1.73 billion in healthcare costs over the lifetime of the population.

“We estimated the increase in annual spending on sugarsweetened beverages would be an average of $30 per person, or just 60 cents per week,” Ms Lal said.

She said health benefits were likely to be better felt by lower socio-economic groups as they were typically more price sensitive — so more likely to stop buying soft drinks when prices rose — and were also higher consumers of sugary drinks, so there was a greater scope for reduction.

“While those in disadvantaged areas will be paying slightly more tax, the difference is very small, only about $5 per year,” she said.

“However, as a percentage of household expenditure, we found that the lower socioeconomic groups will save the most in out-of-pocket health care costs.

“Of course, this tax isn’t going to solve obesity on its own, but it can be an important part of the solution.”

Deakin Global Obesity Centre research supervisor Anna Peeters said the equity of the tax could be improved if this revenue was used to fund initiatives benefiting those with greater disadvantage.

“In Australia, almost two in three adults are overweight or obese, and a quarter of all children,” Professor Peeters said.