Modern Australian
Times Advertising

What's the most value for money way to tackle obesity? Increase taxes on alcohol

  • Written by Jaithri Ananthapavan, Senior Research Fellow, Health Economics, Deakin University

We don’t often equate the kilojoules we drink in our glass of wine or pint of beer with the weight that accumulates around our middle. But our new study shows increasing the price of alcohol is the most value for money policy option to prevent obesity in Australia.

The study, released today, shows if we increase alcohol taxes by standardising them across different types of alcohol, overall alcohol consumption would go down. This would lead to substantial reductions in the kilojoules Australians consume each day.

In 2016-17, Australians drank 186 million litres of pure alcohol – equivalent to more than nine litres for each person over the age of 15 years.

Read more: Think before you drink: alcohol's calories end up on your waistline

The health and social harms associated with drinking too much are well documented. Our research is among the first to show that policies aimed at reducing alcohol consumption would also have significant impacts on body weight.

Current taxes on alcohol

Australia’s current alcohol taxation system is complex and illogical. Most alcoholic beverages are taxed based on their alcohol content, but different rates of tax are applied to different products.

Beers have the lowest rates, and spirits and ready-to-drink beverages (such as a can of bourbon and cola) have the highest.

Wine is taxed using a different system (the wine equalisation tax) based on its final wholesale price.

Under the current system, the total price (including taxation, in 2013 prices) of a standard drink (equivalent to 10g of alcohol) varies from around A$0.65 for cask wine to A$2.79 for ready-to-drink beverages.

Proposed new tax regime

Public health groups have long advocated for reforms to the current alcohol taxation system in Australia.

Our research group modelled the impact of replacing the current system with a uniform volumetric tax, based on alcohol content.

Read more: Fifty years on, time to call it a day for cheap wine casks

We applied a tax of 84 cents per standard drink across all alcoholic beverages (beers, wines, spirits and ready-to-drink products). This is equivalent to a 10% increase to the rate currently applied to spirits.

This proposed change would have the biggest impact on the price of cask wine, increasing it by more than 120%. The price of beer will increase by 28% on average, bottled wine by around 33%, and ready-to-drink alcoholic beverages by 2.7%.

What's the most value for money way to tackle obesity? Increase taxes on alcohol Deakin University Impact on health Increasing the price of alcohol is one of the most effective ways of reducing consumption. Alcohol is high in kilojoules, with a pint of beer almost on par with a chocolate bar in terms of energy content. So even relatively small levels of alcohol consumption can have a big impact on daily energy intake. What's the most value for money way to tackle obesity? Increase taxes on alcohol Pint or chocolate bar? They’re just about equal in kiljoules. Seth Weisfeld Our modelling showed that the proposed new tax regime would, on average, result in a 16% reduction in alcohol consumption across the population. This would lead to average weight loss of around 0.7kg. When this is modelled over the lifetime of the whole population, the health impact is substantial. It is estimated that this tax change could prevent more than 190,000 cases of diabetes and 16,000 cases of cancer. In total, the policy change could result in more than 470,000 healthy life years gained for the Australian population. By preventing obesity-related diseases, this policy would save about A$4.8 billion in health-care costs. These savings are much higher than the total costs of administering this change to the tax system, at A$31.9 million. Read more: Ten reasons some of us should cut back on alcohol The health impacts are in addition to the many other benefits of reduced alcohol consumption. These include the prevention of several chronic diseases (including liver cirrhosis and breast cancer), injuries, road accidents and violence. The additional revenue collected from this new tax regime compared to the current taxation system would be around A$2.3 billion each year. We need an obesity prevention strategy The Council of Australian Governments (COAG) Health Council recently committed to develop a national obesity strategy. In addition, the Senate Select Committee into the obesity epidemic in Australia released a report last week that set out a number of recommendations for government. These initiatives recognise that a range of policies are needed to address the current obesity crisis. In addition to the alcohol tax changes, our study examined the cost-effectiveness of 15 other obesity prevention policies. These included bans on TV advertising for unhealthy foods, a 20% tax on sugary drinks, the Health Star Rating food labelling system, and interventions targeted at schools, workplaces, supermarkets, local communities and private health insurers. What's the most value for money way to tackle obesity? Increase taxes on alcohol A range of policy measures are needed to reduce rates of obesity. Photobac/Shutterstock We found that all of the interventions evaluated would result in substantial health benefits for Australia and offer good value for money. There are a broad range of promising policies that can be acted on by a range of decision makers including local, state and federal governments and the private sector. Even though increasing the price of alcohol is likely to be unpopular, if governments are committed to an effective national obesity strategy then an increase in alcohol taxation should be considered as one part of a comprehensive societal response.

Authors: Jaithri Ananthapavan, Senior Research Fellow, Health Economics, Deakin University

Read more http://theconversation.com/whats-the-most-value-for-money-way-to-tackle-obesity-increase-taxes-on-alcohol-108335

Why Root Canal Treatment Melbourne Is Essential For Saving Natural Teeth

Tooth pain has a way of demanding attention at the worst possible time. When the discomfort becomes persistent and intense, it often signals an infe...

How Bird Flight Diverters Help Protect Wildlife Around Power Infrastructure

Power infrastructure plays an essential role in modern life, but it can also create risks for wildlife, particularly birds moving through establishe...

What Businesses Should Look for in a Commercial Coffee Partner

Choosing a commercial coffee partner is not the same as choosing a machine. It is a broader decision that affects beverage quality, staff efficiency...

3PL Logistics Australia Driving Smarter Supply Chains And Faster Deliveries

In a world where customers expect speed almost as much as quality, logistics has become the silent heartbeat of every successful business. Behind th...

Why Professional Electrical Services Are Essential For Modern Properties

Electricity powers almost every aspect of daily life, from lighting and appliances to complex systems in homes and businesses. This makes choosing a...

What Not to Pack When Moving: The Essential Guide to Smart Packing

Moving house is one of those all-encompassing events in life and most people focus their energy on deciding what to pack. But knowing what not to pa...

From Assistance to Independence: Progression in Daily Living Skills

The ultimate goal of many support systems is to empower individuals to lead lives defined by autonomy and self-reliance. While some support requiremen...

The Cost Difference Between Early Repairs and Delayed Replacement

Automotive maintenance often involves a choice between addressing a small issue immediately or waiting until a component fails completely. When it c...

What Is a Stainless Steel Bar? Applications, Benefits, and Buying Tips

Stainless steel is one of the most widely used materials across industrial and commercial sectors, known for its strength, corrosion resistance, and...

Scholars in Developing Nations Depending on Z library

Access to books often shapes the course of study for scholars who live in regions with thin library shelves and slow supply chains. Many students wo...

6 Cheapest POS Systems in Australia (2026)

The cheapest POS systems in Australia for 2026 are POSApt, Square, Zeller, Loyverse, Epos Now, and Shopify POS (Lite). However, “cheap” does no...

The Ultimate Guide to Automating Your Weekend Yard Chores

We all look forward to the weekend as a chance to unwind after a long week of work. You probably picture yourself relaxing on the patio with a cold ...

How Ignoring Regular Car Servicing Can Lead to Costly Repairs

Owning a car gives you a sweet sense of freedom and comfort. You can go wherever you want, whenever you want. But with that freedom comes responsibili...

Someone Trips at Your Fundraiser. Now What? Understanding Public Liability for NFPs

Three months of planning. Volunteers giving up their weekends. Sponsorships chased, catering sorted, tables decorated. And then, about an hour into ...

Stainless Steel Tube: A Complete Specification Guide for Engineers, Project Managers, and Industrial Buyers

Few materials in the industrial and manufacturing world are as universally relied upon — or as frequently misspecified — as stainless steel tube...

How to Choose the Right Barber Shears Scissors for Professional Results

Since a barber is only as good as their tool, choosing the right barber shear scissor must not be taken lightly. Most barbers end up buying the first ...

Why Commercial Construction Companies Play A Critical Role In Modern Urban Development

Urban development requires highly organised planning, engineering expertise, and professional construction teams capable of delivering complex build...

Essential Features for Comfortable Family Caravan Trips

Choosing the right van for family travel requires careful consideration of how the space will be used on a daily basis. Families have specific needs...