Obesity drains $45b annually from Australia’s economy

Nearly 240,000 Australians can not work due to obesity-related factors.

Obesity and overweight are draining $123m from Australia's economy every single day — $45b annually — equivalent to 1.7% of gross domestic product, according to a GlobalData report.

With two in three Australian adults affected, the losses span productivity, healthcare, and public finances.

Nearly 240,000 working-age Australians are unable to participate in the workforce due to obesity-related factors.

Employers face $20.4b in direct productivity costs from absenteeism and presenteeism, with the healthcare and social assistance sectors losing $3b and mining incurring $434m in absenteeism costs from just 225,000 workers.

Government budgets absorbed $21.2b — $6.5b in reduced tax revenues and $14.6b in increased program costs covering Medicare, PBS, and the Disability Support Pension.

The healthcare system paid an additional $10.5b treating obesity-related complications, the highest attributable cost amongst modifiable risk factors.

Women account for 88% of workforce departures due to obesity. Employment losses for women are over seven times those for men, and earnings losses are five times higher — a gap worsened by the absence of federal discrimination safeguards.

GlobalData recommends investing in prevention by supporting multi-sectoral prevention strategies, including critical food and built environment reforms.

The government must also expand access to comprehensive, evidence-based treatments – from behavioural interventions and pharmacotherapy to metabolic or bariatric surgery.

“Innovative federal-state cost-sharing arrangements are crucial to ensure a unified national strategy, optimise resource allocation, and provide equitable access,” the report added.

Moreover, policymakers must address weight-based discrimination and dismantle structural barriers, especially for women who face disproportionate economic penalties.

"The question for policymakers is not simply what it costs to address obesity, but what it costs not to. Our analysis shows that inaction carries its own significant and ongoing price tag," said Tim Dall, Consulting Executive Director at GlobalData.