Investing in the prevention of chronic disease to increase productivity in the Australian economy: submission to the Economic Reform Roundtable

Non-communicable diseases (NCDs), or chronic diseases, are a significant burden on the Australian economy and population, accounting for 64% of the total burden of disease. This includes major contributions from cancer, mental health conditions, musculoskeletal conditions, cardiovascular conditions, and neurological conditions.

The economic impact is substantial, with projected losses of $67.7 billion in labor force participation by 2030 and over 5,000 full-time equivalent work years lost annually due to mental health claims alone. Despite chronic diseases being largely preventable (causing 90% of preventable deaths), they accounted for $82 billion in health expenditure in 2022-23, nearly half of Australia's total health spending, draining public finances and increasing cost-of-living pressures for individuals.

The submission argues that preventing NCDs is crucial for increasing productivity and improving living standards.

Recommendations:

The submission recommends that the Australian Government:

1. Establish a Healthy Australia national prevention fund to:
   • Expedite the implementation of chronic disease strategies, such as the National Preventive Health Strategy and National Obesity Strategy, aiming for completion within three years.
   • Accelerate the integration of prevention and chronic disease into the Australian Centre for Disease Control's (ACDC) responsibilities, with the ACDC leading prevention policy within three years.
2. Implement a 20% tax on sugar-sweetened beverages to finance the Healthy Australia Fund.