Australia’s obesity epidemic will cost the national economy nearly $90 billion a year within a decade without coordinated policy intervention to address the crisis, according to a bipartisan report released today.
The report titled A Preventable Crisis by The McKell Institute and Menzies Research Centre warns that the economic cost of obesity will hit $87.7 billion a year by 2032 and $228 billion annually by 2060, with two-thirds of the costs linked to lost productivity, including absenteeism, reduced workplace performance and premature death.
Obesity already costs the economy $39 billion annually and $320 million per year in unnecessary hospitalisations.
Its contribution to diseases such as type 2 diabetes, cardiovascular disease and at least 13 cancers make obesity and overweight conditions responsible for 8.3 per cent of Australia’s total disease burden and the largest single driver of preventable health loss, the report says.
McKell Institute Chief Executive Officer Edward Cavanough said: “Obesity is undermining productivity, increasing healthcare costs and widening inequality. Addressing this crisis requires a coordinated national strategy and serious policy leadership across all parties and governments.”
Menzies Research Centre Executive Director David Hughes said: “Obesity is not just a health challenge - it is an economic and social challenge as well. If we invest in preventative health now, we can reduce long-term costs to taxpayers, ease pressure on businesses, and build a healthier, more productive society.”
The report shows that two in three Australian adults are now overweight or obese, placing Australia among the worst-affected countries in the OECD.
The report also found that:
- 1 in 4 children aged 5 –17 are overweight or obese
- 80 per cent of obese adolescents become obese adults
- More than one million Australians now have severe obesity
Despite the scale of the challenge, Australia spends only around two per cent of its health budget on prevention, well below the OECD average.
The report calls for urgent action, including mandatory health labelling on packaged foods - currently only 36 per cent of products carry the Health Star Rating, well short of the 70 per cent target - as well as incentives for businesses that invest in employee health programs.
It also calls for government to establish a National Obesity Coordination Framework with enforceable targets, expand subsidised access to new anti-obesity medications and increase prevention funding to match OECD standards.
The report, commissioned by Novo Nordisk, marks the first time the progressive McKell Institute and conservative Menzies Research Centre have collaborated on a major research project. The report is available here.
Contact details:
Ben Mitchell: 0419 850 212