With obesity having overtaken tobacco as the leading risk factor for disease burden in Australia, we are continuing our calls for a tax on sugar sweetened beverages.
Our 2026‒27 Pre-Budget Submission details why a tax on sugar-sweetened beverages is one of the most impactful preventative measures available to government.
Australians consume more than 2.4 billion litres of sugary drinks every year. Frequent consumption of sugary drinks is associated with a range of health problems, including poor dental health and obesity — a major risk factor for chronic diseases.
We are calling for a tax on selected sugar-sweetened beverages at a rate of 50c per 100g of sugar, which would raise the price of an average 375ml can of soft drink by about 20c, encourage healthier choices and create a strong incentive for manufacturers to reduce sugar content.
Our modelling shows a sugar-sweetened beverage tax would reduce annual sugar consumption by about 2kg per person, raise about $3.6 billion over four years, and drive product reformulation as manufacturers adjust their recipes to avoid the tax.
The upcoming federal budget is an opportunity for the government to show leadership and adopt proven measures that reduce preventable disease and ease pressure on hospitals and primary care.
A tax on sugar-sweetened beverages is backed by extensive international evidence, with more than 130 jurisdictions around the world having introduced it as a policy measure.
Following federal AMA advocacy through the SicklySweet campaign, a tax on sugar sweetened beverages has also been supported by the Gratton Institute and others, and was a key recommendation of by a parliamentary inquiry into diabetes in 2025.
