Obesity and Taxation - Is Australia Ready?

Obesity is a growing epidemic spreading across the developed world, including Australia. It negatively affects the health of individuals and puts pressure on a country's food and health systems, the environment and its economic status. In this article, three taxation approaches are considered as policy tools available to the Australian Government which could assist them in the fight against obesity: tax on the person, tax on inputs and taxes on the product. A critical analysis of each taxation approach is undertaken, existing international methodologies examined and, on this basis, suggestions are made to impose taxes on Highly Processed Foods and Sweetened Sugary Beverages. Particular focus is given to reform to the Australian Goods and Services Tax regime. It is argued that through this specific taxation approach, the fight against obesity in Australia can be positively addressed.