Policy Changes in Food Pricing Could Transform Australian Dietary Habits
Adjusting food taxes and subsidies could significantly improve Australian diets by making healthy foods more affordable and ultra-processed foods more expensive, potentially reducing chronic disease risk.
Recent research conducted by The George Institute for Global Health suggests that adjusting food prices through taxes and subsidies can significantly influence Australian eating behaviors, potentially leading to improved public health outcomes. The study highlights that increasing the cost of ultra-processed foods like sugary drinks while making healthy foods such as fruits and vegetables more affordable could substantially shift consumption patterns. Data analysis of grocery purchases over five years from 10,000 households revealed that a 20% decrease in the price of fresh produce increased its purchase volume by up to 20%, whereas a 20% increase in sugary drink prices reduced their purchase by approximately 24%. These findings are consistent across different socio-economic groups, emphasizing the broad impact of pricing policies on diet choices.
The current scenario shows that fewer than 5% of Australians meet the daily recommended intake of fruits and vegetables, amid a rising cost of living. The federal government already subsidizes fresh produce in remote communities, and expanding such initiatives could further encourage healthier eating habits nationally. Implementing taxes on sugary drinks, a common practice in over 100 countries, alongside subsidies for nutritious foods, not only promotes better health but can also generate revenue to fund further health-promoting measures.
This research underscores the importance of evidence-based policy strategies in combating diet-related chronic diseases such as cardiovascular disease, cancer, and type 2 diabetes, which are linked to poor diets high in salt, sugar, and processed foods. It advocates for targeted fiscal interventions as effective tools that can be scaled across different regions to promote healthier diets, ultimately reducing the burden of chronic illnesses in Australia.
Learn more about the impact of food pricing policies on Australian health in the original study published in Nature Food. source: https://medicalxpress.com/news/2025-07-prices-junk-food-reshape-australian.html
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