Modern Australian
The Times

Don't believe the myths – taxing sugary drinks makes us drink less of it

  • Written by Gary Sacks, Associate Professor, Deakin University

This year’s Australian of the Year, Dr James Muecke, is an eye specialist with a clear vision. He wants to change the way the world looks at sugar and the debilitating consequences of diabetes, which include blindness.

Muecke is pushing for Scott Morrison’s government to enact a tax on sugary drinks to help make that a reality.

Such a tax would increase the price of soft drinks, juices and other sugary drinks by around 20%. The money raised could be used to fund health promotion programs around the country.

The evidence backing his calls is strong.

Read more: A sugary drinks tax could recoup some of the costs of obesity while preventing it

Taxes on sugary drinks work

Several governments around the world have adopted taxes on sugary drinks in recent years. The evidence is clear: they work.

Last year, a summary of 17 studies found health taxes on sugary drinks implemented in Berkeley and other places in the United States, Mexico, Chile, France and Spain reduced both purchases and consumption of sugary drinks.

Reliable evidence from around the world tells us a 10% tax reduces sugary drink intakes by around 10%.

The United Kingdom soft drink tax has also been making headlines recently. Since its introduction, the amount of sugar in drinks has decreased by almost 30%, and six out of ten leading drink companies have dropped the sugar content of more than 50% of their drinks.

Read more: Sugary drinks tax is working – now it's time to target cakes, biscuits and snacks

In Australia, modelling studies have shown a 20% health tax on sugary drinks is likely to save almost A$2 billion in healthcare costs over the lifetime of the population by preventing diet-related diseases like diabetes, heart disease and several cancers.

This is over and above the cost benefits of preventing dental health issues linked to consumption of sugary drinks.

Most of the health benefits (nearly 50%) would occur among those living in the lowest socioeconomic circumstances.

A 20% health tax on sugary drinks would also raise over A$600 million to invest back into the health of Australians.

Don't believe the myths – taxing sugary drinks makes us drink less of it After sugar taxes are introduced, people tend to switch from sugar drinks to other product lines, such as bottled water and artificially sweetened drinks. l i g h t p o e t/Shutterstock

So what’s the problem?

The soft drink industry uses every trick in the book to try to convince politicians a tax on sugary drinks is bad policy.

Here are our responses to some common arguments against these taxes:

Myth 1: Sugary drink taxes unfairly disadvantage the poor

It’s true people on lower incomes would feel the pinch from higher prices on sugary drinks. A 20% tax on sugary drinks in Australia would cost people from low socioeconomic households about A$35 extra per year. But this is just A$4 higher than the cost to the wealthiest households.

Importantly, poorer households are likely to get the biggest health benefits and long-term health care savings.

What’s more, the money raised from the tax could be targeted towards reducing health inequalities.

Read more: Australian sugary drinks tax could prevent thousands of heart attacks and strokes and save 1,600 lives

Myth 2: Sugary drink taxes would result in job losses

Multiple studies have shown no job losses resulted from taxes on sugar drinks in Mexico and the United States.

This is in contrast to some industry-sponsored studies that try to make the case otherwise.

In Australia, job losses from such a tax are likely to be minimal. The total demand for drinks by Australian manufacturers is unlikely to change substantially because consumers would likely switch from sugary drinks to other product lines, such as bottled water and artificially sweetened drinks.

Don't believe the myths – taxing sugary drinks makes us drink less of it A tax on sugary drinks is unlikely to cost jobs. Successo images/Shutterstock

Despite industry protestations, an Australian tax would have minimal impact on sugar farmers. This is because 80% of our locally grown sugar is exported. Only a small amount of Australian sugar goes to sugary drinks, and the expected 1% drop in demand would be traded elsewhere.

Myth 3: People don’t support health taxes on sugary drinks

There is widespread support for a tax on sugary drinks from major health and consumer groups in Australia.

In addition, a national survey conducted in 2017 showed 77% of Australians supported a tax on sugary drinks, if the proceeds were used to fund obesity prevention.

Myth 4: People will just swap to other unhealthy products, so a tax is useless

Taxes, or levies, can be designed to avoid substitution to unhealthy products by covering a broad range of sugary drink options, including soft drinks, energy drinks and sports drinks.

There is also evidence that shows people switch to water in response to sugary drinks taxes.

Read more: Sweet power: the politics of sugar, sugary drinks and poor nutrition in Australia

Myth 5: There’s no evidence sugary drink taxes reduce obesity or diabetes

Because of the multiple drivers of obesity, it’s difficult to isolate the impact of a single measure. Indeed, we need a comprehensive policy approach to address the problem. That’s why Dr Muecke is calling for a tax on sugary drinks alongside improved food labelling and marketing regulations.

Towards better food policies

The Morrison government has previously and repeatedly rejected pushes for a tax on sugary drinks.

But Australian governments are currently developing a National Obesity Strategy, making it the ideal time to revisit this issue.

We need to stop letting myths get in the way of evidence-backed health policies. Let’s listen to Dr Muecke – he who knows all too well the devastating effects of products packed full of sugar.

Authors: Gary Sacks, Associate Professor, Deakin University

Read more https://theconversation.com/dont-believe-the-myths-taxing-sugary-drinks-makes-us-drink-less-of-it-130694

The Growing Popularity of Lab Grown Diamonds in Sydney and Hong Kong

The diamond industry has changed significantly in recent years as more buyers seek ethical, affordable, and sustainable alternatives to mined diamon...

Modern AI SEO Agency vs Traditional SEO: What’s the Difference

Search engine optimisation has changed dramatically over the past few years. Search engines have become smarter, user behaviour has evolved, and bus...

Caravan Travel for Modern Australian Getaways: Plan a Comfortable Holiday

A family road trip is one of the best ways to explore Australia together. And, travelling by caravan gives you the freedom to take your time, stop a...

Mini Excavator and Trailer Package for Sale: What I Buy as One Deal in 2026

The first client who asked me for a mini excavator and trailer package for sale wasn’t trying to save a few hundred dollars on shipping. They we...

Make Dad a Guest in His Own Home This Father’s Day

Father’s Day can accidentally turn Dad into the unpaid event manager of his own celebration. He lights the barbecue, finds extra chairs, checks wh...

Where to Enjoy Your Off-Road Caravan on the Gold Coast

With a caravan, you can travel anywhere and everywhere without battling the rush of the peak holiday season or last-minute reservations. While the r...

How Osteopathy Supports Recovery from Sciatica and Nerve Pain

Sciatica isn't just annoying. It's genuinely painful. It sits deep in your glute and shoots straight down the back of your leg. It turns something as...

The Winter Jewellery Edit: Five Pieces You'll Wear All Season

As wardrobes shift to cosy knits, tailored coats and rich seasonal textures, jewellery becomes the finishing touch that pulls every winter outfit to...

7 Signs It's Time to Upgrade Your Piston Air Compressor

If you run a workshop, panel shop, or fabrication business anywhere around Perth, you already know what heat and dust do to equipment over a few sum...

How Long Do Bathroom Renovations Melbourne Take? Step-by-Step Process Explained

Planning a bathroom renovation is exciting, but one of the biggest questions homeowners ask is, "How long will it take?" While every project is uniq...

Why Your Skin Breaks Out: The Science of Acne Explained

Acne is the most common skin condition in the world. An estimated 85% of people experience it at some point between the ages of 12 and 24, and a gro...

10 Swimwear Trends Australian Women Are Wearing This Summer

Every Australian summer brings a fresh wave of swimwear trends, but some styles have much greater staying power than others. While fashion constantly ...

Why Regular Skills Updates Are Essential for Licensed Security Officers

A guard at a Brisbane shopping centre gets a call about a shoplifter who's turned aggressive.  They’ve done the job for six years. But their de-...

10 Benefits of Choosing Professional Tutoring Penrith Services

Every student has unique learning strengths, challenges, and academic goals. While classroom teaching provides essential knowledge and structure, so...

Sunshine Coast Baby Classes Prove Big Hit Among First-Time Mums

There's a movement gaining traction on the Sunshine Coast, providing a village of support, socialisation and relief for first-time mothers and babie...

Father's Day Gift Ideas for Men Who Are Hard to Buy For

Some dads are easy to buy for. Others do not want anything, already have everything, or give you the classic "don't worry about me" answer every yea...

Top 5 Mistakes That Wear Out Your Brakes Faster

Brakes don't need frequent replacements like oil changes do.   But a lot of the wear happens quietly, over months, because of habits most drivers...

Plantation Shutters vs Curtains: Which Is Better for Your New Home?

Moving into a new home is an exciting opportunity to personalise your space and make it your own. While many homeowners focus on furniture, flooring...