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Modeled Health Benefits of a SSB Tax across Different Socioeconomic Groups in Australia

2017

This analysis assessed the potential cost-effectiveness, health gains, and financial impacts of a 20% sugar-sweetened beverage (SSB) tax for Australia. Australia-specific price elasticities were used to predict decreases in SSB consumption for each socio-economic quintile. Changes in body mass index (BMI) were based on SSB consumption, BMI from the Australian Health Survey, and energy balance equations. Markov cohort models were used to estimate the health-adjusted life years (HALYs) gained, healthcare costs saved, and out-of-pocket costs for the Australian population.

Results showed that a 20% SSB tax would lead to HALY gains of more than 175,000 and healthcare cost savings of more than AU$1,700 million over the lifetime of the population. Nearly half of the health gains benefited the lowest two quintiles. Whilst those in more disadvantaged areas would pay more SSB tax, the difference between areas was small. Annual tax revenue exceeded AU$640 million.

 

Source:

Lal A, Mantilla-Herrera AM, Veerman L et al. Modelled Health Benefits of a Sugar-Sweetened Beverage Tax across Different Socioeconomic Groups in Australia: A Cost-Effectiveness and Equity Analysis. PLOS Medicine 2017; 14 (6): e1002326. https://doi.org/10.1371/journal.pmed.1002326