Removing the Australian tax exemption on healthy food adds food stress to families vulnerable to poor nutrition

Abstract Objective: To assess the impact of changing the Australian Goods and Services Tax (GST) on household food stress, which occurs when >25% of disposable income needs to be spent on food. Methods: Weekly healthy meal plan costs for average‐income (AI), low‐income (LI) and welfare‐dependent...

Full description

Bibliographic Details
Main Authors: Timothy J. Landrigan, Deborah A. Kerr, Satvinder S. Dhaliwal, Victoria Savage, Christina M. Pollard
Format: Article
Language:English
Published: Elsevier 2017-12-01
Series:Australian and New Zealand Journal of Public Health
Subjects:
Online Access:https://doi.org/10.1111/1753-6405.12714
_version_ 1797728258450522112
author Timothy J. Landrigan
Deborah A. Kerr
Satvinder S. Dhaliwal
Victoria Savage
Christina M. Pollard
author_facet Timothy J. Landrigan
Deborah A. Kerr
Satvinder S. Dhaliwal
Victoria Savage
Christina M. Pollard
author_sort Timothy J. Landrigan
collection DOAJ
description Abstract Objective: To assess the impact of changing the Australian Goods and Services Tax (GST) on household food stress, which occurs when >25% of disposable income needs to be spent on food. Methods: Weekly healthy meal plan costs for average‐income (AI), low‐income (LI) and welfare‐dependent (WDI) families were calculated using the 2013 Western Australian (WA) Food Access and Costs Survey. Four GST scenarios were compared: 1) status quo; 2) increasing GST to 15%; 3) expanding base to include exempt foods at 10% GST; and 4) expanding base to include exempt foods and increasing the tax to 15%. Results: Single‐parent families risk food stress regardless of their income or the GST scenario (requiring 24–42% of disposable income). The probability of food stress in Scenario 1 is 100% for WDI two‐parent families and 36% for LI earners. In Scenarios 3 and 4, food stress probability is 60–72% for two‐parent LI families and AI single‐parent families, increasing to 88–94% if residing in very remote areas. Conclusion: There is food stress risk among single‐parent, LI and WDI families, particularly those residing in very remote areas. Implications for public health: Expanding GST places an additional burden on people who are already vulnerable to poor nutrition and chronic disease due to their socioeconomic circumstances.
first_indexed 2024-03-12T11:11:24Z
format Article
id doaj.art-3127a7f7770f45bdadca77cadbfd3d4b
institution Directory Open Access Journal
issn 1326-0200
1753-6405
language English
last_indexed 2024-03-12T11:11:24Z
publishDate 2017-12-01
publisher Elsevier
record_format Article
series Australian and New Zealand Journal of Public Health
spelling doaj.art-3127a7f7770f45bdadca77cadbfd3d4b2023-09-02T02:48:16ZengElsevierAustralian and New Zealand Journal of Public Health1326-02001753-64052017-12-0141659159710.1111/1753-6405.12714Removing the Australian tax exemption on healthy food adds food stress to families vulnerable to poor nutritionTimothy J. Landrigan0Deborah A. Kerr1Satvinder S. Dhaliwal2Victoria Savage3Christina M. Pollard4School of Public Health Curtin University Western AustraliaSchool of Public Health Curtin University Western AustraliaSchool of Public Health Curtin University Western AustraliaSchool of Public Health Curtin University Western AustraliaSchool of Public Health Curtin University Western AustraliaAbstract Objective: To assess the impact of changing the Australian Goods and Services Tax (GST) on household food stress, which occurs when >25% of disposable income needs to be spent on food. Methods: Weekly healthy meal plan costs for average‐income (AI), low‐income (LI) and welfare‐dependent (WDI) families were calculated using the 2013 Western Australian (WA) Food Access and Costs Survey. Four GST scenarios were compared: 1) status quo; 2) increasing GST to 15%; 3) expanding base to include exempt foods at 10% GST; and 4) expanding base to include exempt foods and increasing the tax to 15%. Results: Single‐parent families risk food stress regardless of their income or the GST scenario (requiring 24–42% of disposable income). The probability of food stress in Scenario 1 is 100% for WDI two‐parent families and 36% for LI earners. In Scenarios 3 and 4, food stress probability is 60–72% for two‐parent LI families and AI single‐parent families, increasing to 88–94% if residing in very remote areas. Conclusion: There is food stress risk among single‐parent, LI and WDI families, particularly those residing in very remote areas. Implications for public health: Expanding GST places an additional burden on people who are already vulnerable to poor nutrition and chronic disease due to their socioeconomic circumstances.https://doi.org/10.1111/1753-6405.12714welfarefood costtaxfood stressincome
spellingShingle Timothy J. Landrigan
Deborah A. Kerr
Satvinder S. Dhaliwal
Victoria Savage
Christina M. Pollard
Removing the Australian tax exemption on healthy food adds food stress to families vulnerable to poor nutrition
Australian and New Zealand Journal of Public Health
welfare
food cost
tax
food stress
income
title Removing the Australian tax exemption on healthy food adds food stress to families vulnerable to poor nutrition
title_full Removing the Australian tax exemption on healthy food adds food stress to families vulnerable to poor nutrition
title_fullStr Removing the Australian tax exemption on healthy food adds food stress to families vulnerable to poor nutrition
title_full_unstemmed Removing the Australian tax exemption on healthy food adds food stress to families vulnerable to poor nutrition
title_short Removing the Australian tax exemption on healthy food adds food stress to families vulnerable to poor nutrition
title_sort removing the australian tax exemption on healthy food adds food stress to families vulnerable to poor nutrition
topic welfare
food cost
tax
food stress
income
url https://doi.org/10.1111/1753-6405.12714
work_keys_str_mv AT timothyjlandrigan removingtheaustraliantaxexemptiononhealthyfoodaddsfoodstresstofamiliesvulnerabletopoornutrition
AT deborahakerr removingtheaustraliantaxexemptiononhealthyfoodaddsfoodstresstofamiliesvulnerabletopoornutrition
AT satvindersdhaliwal removingtheaustraliantaxexemptiononhealthyfoodaddsfoodstresstofamiliesvulnerabletopoornutrition
AT victoriasavage removingtheaustraliantaxexemptiononhealthyfoodaddsfoodstresstofamiliesvulnerabletopoornutrition
AT christinampollard removingtheaustraliantaxexemptiononhealthyfoodaddsfoodstresstofamiliesvulnerabletopoornutrition