TAXES on sugar, salt and fat could save the government billions on healthcare costs.
A new University of Melbourne study shows a saving of $3.4 billion could be made through the introduction of a package of taxes on sugar, salt, saturated fats and sugary drinks and the subsidisation of fruits and vegetables.
It would also add an extra 2.1 years of healthy life for every 100 Australians alive in 2010.
Research co-author Tony Blakely said the research team also experimented with different combinations of taxes and subsidies to ensure minimum financial pain to households.
"Our modelling shows Australia can achieve maximum health impact for less than one per cent impact on household budgets," Dr Blakely said.
"Critics often say taxes on unhealthy food make life tougher for low socio-economic households, but we've demonstrated that the right structuring of incentives means the financial impact on households is negligible, while their heath improves."
The research was published today in PLOS Medicine.