Fat tax won’t curb obesity levels in Australia

Denmark has become the first country in the world to impose a saturated fat tax on processed foods, including butter, milk and meats. Under the new law, foods are subject to a tax if they contain more than 2.3% saturated fats.

AFGC Chief Executive Kate Carnell said imposing a tax on high fat, sugar and salt (HFSS) foods won’t change overweight and obesity levels in Australia.

“There is already a 10% tax on processed foods - the GST which came into effect in 2000,” Carnell said.

“Australia has had a GST on processed foods - not on fresh foods or staples - for the past decade, yet obesity levels have continued to rise.

“Food taxes are regressive as they penalise people who can least afford it - fat taxes were also dismissed by last year's Henry Tax Review.

“Taxing dairy products also does not make sense as people should be encouraged to eat more calcium in their diets rather than less.”

Food companies are already working with government, through the Food and Health Dialogue, to set saturated fat reduction targets for food product areas including in processed meats. By the end of 2013, leading manufacturers have agreed to reduce by 10% the saturated fat content of cooked/smoked sausages and luncheon meats (excluding salamis) that exceed 6.5 g of saturated fat per 100 g.

Carnell said Australia will only reverse the obesity trend with a comprehensive preventative health approach involving governments, industry, the community and individuals taking more responsibility for their personal health and of their families.