Read The Times Australia

Daily Bulletin

What's the most value for money way to tackle obesity? Increase taxes on alcohol

  • Written by: Jaithri Ananthapavan, Senior Research Fellow, Health Economics, Deakin University

We don’t often equate the kilojoules we drink in our glass of wine or pint of beer with the weight that accumulates around our middle. But our new study shows increasing the price of alcohol is the most value for money policy option to prevent obesity in Australia.

The study, released today, shows if we increase alcohol taxes by standardising them across different types of alcohol, overall alcohol consumption would go down. This would lead to substantial reductions in the kilojoules Australians consume each day.

In 2016-17, Australians drank 186 million litres of pure alcohol – equivalent to more than nine litres for each person over the age of 15 years.

Read more: Think before you drink: alcohol's calories end up on your waistline

The health and social harms associated with drinking too much are well documented. Our research is among the first to show that policies aimed at reducing alcohol consumption would also have significant impacts on body weight.

Current taxes on alcohol

Australia’s current alcohol taxation system is complex and illogical. Most alcoholic beverages are taxed based on their alcohol content, but different rates of tax are applied to different products.

Beers have the lowest rates, and spirits and ready-to-drink beverages (such as a can of bourbon and cola) have the highest.

Wine is taxed using a different system (the wine equalisation tax) based on its final wholesale price.

Under the current system, the total price (including taxation, in 2013 prices) of a standard drink (equivalent to 10g of alcohol) varies from around A$0.65 for cask wine to A$2.79 for ready-to-drink beverages.

Proposed new tax regime

Public health groups have long advocated for reforms to the current alcohol taxation system in Australia.

Our research group modelled the impact of replacing the current system with a uniform volumetric tax, based on alcohol content.

Read more: Fifty years on, time to call it a day for cheap wine casks

We applied a tax of 84 cents per standard drink across all alcoholic beverages (beers, wines, spirits and ready-to-drink products). This is equivalent to a 10% increase to the rate currently applied to spirits.

This proposed change would have the biggest impact on the price of cask wine, increasing it by more than 120%. The price of beer will increase by 28% on average, bottled wine by around 33%, and ready-to-drink alcoholic beverages by 2.7%.

What's the most value for money way to tackle obesity? Increase taxes on alcohol Deakin University Impact on health Increasing the price of alcohol is one of the most effective ways of reducing consumption. Alcohol is high in kilojoules, with a pint of beer almost on par with a chocolate bar in terms of energy content. So even relatively small levels of alcohol consumption can have a big impact on daily energy intake. What's the most value for money way to tackle obesity? Increase taxes on alcohol Pint or chocolate bar? They’re just about equal in kiljoules. Seth Weisfeld Our modelling showed that the proposed new tax regime would, on average, result in a 16% reduction in alcohol consumption across the population. This would lead to average weight loss of around 0.7kg. When this is modelled over the lifetime of the whole population, the health impact is substantial. It is estimated that this tax change could prevent more than 190,000 cases of diabetes and 16,000 cases of cancer. In total, the policy change could result in more than 470,000 healthy life years gained for the Australian population. By preventing obesity-related diseases, this policy would save about A$4.8 billion in health-care costs. These savings are much higher than the total costs of administering this change to the tax system, at A$31.9 million. Read more: Ten reasons some of us should cut back on alcohol The health impacts are in addition to the many other benefits of reduced alcohol consumption. These include the prevention of several chronic diseases (including liver cirrhosis and breast cancer), injuries, road accidents and violence. The additional revenue collected from this new tax regime compared to the current taxation system would be around A$2.3 billion each year. We need an obesity prevention strategy The Council of Australian Governments (COAG) Health Council recently committed to develop a national obesity strategy. In addition, the Senate Select Committee into the obesity epidemic in Australia released a report last week that set out a number of recommendations for government. These initiatives recognise that a range of policies are needed to address the current obesity crisis. In addition to the alcohol tax changes, our study examined the cost-effectiveness of 15 other obesity prevention policies. These included bans on TV advertising for unhealthy foods, a 20% tax on sugary drinks, the Health Star Rating food labelling system, and interventions targeted at schools, workplaces, supermarkets, local communities and private health insurers. What's the most value for money way to tackle obesity? Increase taxes on alcohol A range of policy measures are needed to reduce rates of obesity. Photobac/Shutterstock We found that all of the interventions evaluated would result in substantial health benefits for Australia and offer good value for money. There are a broad range of promising policies that can be acted on by a range of decision makers including local, state and federal governments and the private sector. Even though increasing the price of alcohol is likely to be unpopular, if governments are committed to an effective national obesity strategy then an increase in alcohol taxation should be considered as one part of a comprehensive societal response.

Authors: Jaithri Ananthapavan, Senior Research Fellow, Health Economics, Deakin University

Read more http://theconversation.com/whats-the-most-value-for-money-way-to-tackle-obesity-increase-taxes-on-alcohol-108335

Business News

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...