Australia's Health Revolution: A 20% Tax on Unhealthy Foods

New research suggests a 20% tax on unhealthy foods in Australia could prevent 212,000 premature deaths and save AUD 14.9 billion in healthcare costs. If revenues subsidize fruits and vegetables, the benefits could be greater. This policy aims to reduce obesity and diet-related diseases, particularly for low-income Australians.


Devdiscourse News Desk | Sydney | Updated: 25-03-2026 10:37 IST | Created: 25-03-2026 10:37 IST
Australia's Health Revolution: A 20% Tax on Unhealthy Foods
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In a fresh attempt to combat Australia's rising obesity crisis, researchers suggest introducing a 20% tax on unhealthy foods. This measure could potentially save AUD 14.9 billion in healthcare costs and prevent 212,000 premature deaths, as per a study published in The Lancet Public Health.

The proposed tax would target sugary drinks, pastries, and processed meats, with revenue invested in subsidizing fruits and vegetables. The initiative, modelled by researchers, predicts a significant decline in diet-related illnesses like type 2 diabetes and heart disease.

Support for this initiative is strong, with over half of Australians backing a tax, particularly if the proceeds help make healthier options more accessible. The policy seeks to mirror the success of past public health campaigns, such as the reduction in smoking through taxation.

(With inputs from agencies.)

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