In brief
- Sugar-sweetened drink consumption could fall 24 per cent if a sugar tax is introduced, new research has found.
- The tax could raise revenue for health services and dental care initiatives.
A 20 per cent tax on sugary drinks could prevent millions of tooth cavities and add hundreds of thousands of years to Australians' lives collectively, according to new research,
A Griffith University study published in BMJ Public Health on Wednesday found a levy applied to non-alcoholic drinks with added sugar, such as soft drinks and most juices, could prevent 3.7 million cases of tooth decay, 191,000 cases of gum disease, and 115,000 cases of complete tooth loss across Australia over the next 25 years.
The study suggested that tax revenue could be used to strengthen health services and to implement a universal health care approach to dental care, but co-author Lennert Veerman said the benefits would extend beyond oral health.
"The study also estimates a 20 per cent sugar tax would generate approximately half a million health-adjusted life years for the 2019 Australian population over their lifetime, both from dental health improvements and reductions in weight-related illness," the Griffith University public health professor said.
As of 2017–2018, approximately 9.1 per cent of Australians adults reported drinking sugar-sweetened beverages every day, while nearly one-third of Australians aged 15 and older had untreated tooth decay or cavities, according to the study.
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Using a computer-based simulation, researchers found that for every 1 per cent increase in the price of sugar-sweetened drinks, consumption was expected to drop by 1.2 per cent.
Assuming a 20 per cent tax is passed on in full to consumers, the study predicted the price increase would result in a 24 per cent reduction in consumption.
Marco Peres from SingHealth Duke-NUS in Singapore said the findings highlighted the oral health benefits of sugar taxes.
"Importantly, a sugar tax is a population-level measure," he said.
"It does not rely solely on individuals changing their behaviour but helps create an environment in which healthier choices become easier.
"This is particularly important if we want prevention strategies to reach the whole population and reduce health inequalities."
United Kingdom tax reduced sugar content
Oral diseases are a growing public health concern, affecting approximately 3.5 billion people globally.
The study found that oral diseases contributed to 2.4 per cent of Australia’s total health burden — the impact of a health problem on a population — and ranked among the top 10 diseases.
According to the World Health Organization, 116 countries have an excise tax on at least one type of sugar-sweetened beverage. The study notes there is a high level of support among the Australian public for policies that reduce sugar intake.
In 2018, the United Kingdom introduced a tax of 19.4 or 25.9 pence per litre, depending on the sugar content of beverages.
It led to a 46 per cent reduction in the sugar contained in soft drinks, the UK government said, with nearly 90 per cent of the market now containing sugar below the level at which the tax applies.
A 2024 parliamentary inquiry into Australia's diabetes epidemic recommended Australia introduce a 20 per cent tax on sugar-sweetened drinks.
The Parliamentary Budget Office estimated that, after allowing for collection costs and a drop in GST revenue, such a tax would raise nearly $1.4 billion in the following two financial years.
At the time, the Australian Medical Association said it was "100 per cent behind" the tax.
"Our modelling shows we can prevent thousands of cases of diabetes if we act," the association's president Steve Robson said.
In 2024, the Australian Beverages Council — the peak body for the non-alcoholic drinks industry in the country — rejected calls for a sugar tax, claiming it was a "misguided measure that misses the mark and will only hit hardest those households that can least afford it".
While critics argue a sugar tax would disproportionately affect lower-income households, a 2017 Deakin University study found those households stood to gain the greatest health benefits.
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