AMA urges sugar-sweetened beverage tax in pre-budget push to curb obesity

Australia’s peak doctors’ group is urging the federal government to introduce a tax on sugar‑sweetened drinks, arguing the measure is a simple, evidence‑based step to tackle the nation’s escalating obesity burden and relieve pressure on hospitals and primary care.

In its 2026–27 Pre‑Budget Submission, the Australian Medical Association (AMA) proposes a suite of practical, cost‑effective health reforms and identifies a sugar‑sweetened beverage tax as one of the most impactful preventive measures available. The AMA notes obesity has overtaken tobacco as the leading risk factor for disease burden in Australia.

Regular consumption of sugary drinks is linked to poor dental health and to obesity, a major risk factor for type 2 diabetes, heart disease, stroke and cancer. AMA President Dr Danielle McMullen described the proposed levy as “common‑sense” and backed by “extensive international evidence”.

“More than 130 jurisdictions around the world have introduced a tax on sugar‑sweetened beverages and seen clear reductions in sugar consumption,” she said. “Australia is now an outlier, and we can’t keep putting this off while preventable disease keeps climbing.

A sugar‑sweetened beverage tax is simple, effective and long overdue.” The AMA is calling for a tax on selected sugar‑sweetened beverages at a rate of 50c per 100g of sugar. According to the association, that would lift 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.

Australians consume more than 2.4 billion litres of sugary drinks each year — enough to fill 960 Olympic‑sized swimming pools. Modelling cited by the AMA indicates a tax would reduce annual sugar intake by about 2kg per person, raise about $3.6 billion over four years and drive product reformulation as manufacturers adjust recipes to avoid the levy.

Dr McMullen said Australia cannot continue relying on an overstretched health system to absorb the consequences of preventable disease when straightforward measures exist to reduce harm and long‑term demand. “We can’t keep pretending the health system can absorb all the consequences of preventable disease — it can’t,” she said.

“This is a straightforward, evidence‑based policy that improves health outcomes and delivers significant budget savings. If we’re serious about a sustainable health system, we must take prevention seriously.” The AMA argues the upcoming federal budget is an opportunity for the government to show leadership by adopting proven steps that reduce preventable disease and ease pressure on care.

“It’s hard to argue against a measure that improves health, saves money, and is already working overseas,” Dr McMullen said. “We can’t keep kicking this can down the road — especially when that can contains about 12 teaspoons of sugar.”