New report calls for action with obesity costing 1.7% of GDP, affecting households, workforce participation, and disproportionately impacting women.   

Sydney, 3^rd March 2026: Anew independent report titled “Cost of Inaction in Treating Obesity in Australia,” from GlobalData, a leading intelligence and productivity platform, reveals obesity and overweight are quietly draining $123 million from Australia’s economy every single day – $45 billion annually. This isn’t just a health challenge; it’s a hidden tax impacting every Australian through lost productivity, reduced tax revenues and mounting healthcare costs.

According to Australian Institute of Health and Welfare (AIHW), obesity is a chronic, progressive disease that represents not only one of Australia’s most significant public health challenges and leading cause of disease burden, but one that is also silently draining Australia’s economic engine. According to Australian Bureau of Statistics, with two in three Australian adults affected by overweight or obesity, the nation stands at a crucial crossroads.

Dr Steven Lu, a Melbourne-based general practitioner, comments: “We often underestimate the hidden cost of living with obesity. It’s not just about healthcare expenses – it can affect career choices, confidence to pursue opportunities, and missed experiences.”

While the debate about action on obesity continues, Australians, the healthcare system, and businesses are already paying a high price. This compelling analysis provides undeniable evidence to underpin targeted policy interventions.

Critical findings from the analysis underscore the profound human and economic cost of inaction:

• Workforce productivity challenge: Nearly 240,000 working-age Australians—equivalent to five full Sydney Cricket Ground (SCG) stadiums—are unable to participate in the workforce due to obesity-related factors. This translates to $13.4 billion in lost earnings and 22.4 million lost workdays annually.
• Business pressure: Australian employers face $20.4 billion in direct productivity costs from absenteeism and presenteeism. The healthcare and social assistance sectors lose $3 billion, while mining incurs $434 million in absenteeism costs from just 225,000 workers.
• Government budget strain: Government budgets absorbed $21.2 billion in reduced tax revenues ($6.5 billion) and increased program costs ($14.6 billion for Medicare, PBS, and Disability Support Pension). The healthcare system paid an additional $10.5 billion treating obesity-related complications—the largest attributable cost among modifiable risk factors.
• Gender inequity: Women bear a disproportionate burden, accounting for 88% of workforce departures due to obesity. Employment losses for women are over seven times those for men. Earnings losses are five times higher among women than men —exacerbated by a lack of federal discrimination safeguards.

Tim Dall, Consulting Executive Director at GlobalData, and one of the study authors, adds: “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.”  

The report highlights that decisive action in the following areas is essential to turn the tide against obesity and build a healthier, more economically robust Australia:

• Investing in prevention: By supporting multi-sectoral prevention strategies, including critical food and built environment reforms, communities can proactively reduce the incidence of obesity, safeguard future generations’ health, and lessen the long-term burden on our healthcare system.
• Ensuring access to care: Expanding access to comprehensive, evidence-based treatments – from behavioural interventions and pharmacotherapy to metabolic/bariatric surgery – will empower individuals to manage their health effectively, reduce severe health complications, and improve quality of life, particularly for underserved populations.
• Strengthening national coordination: Innovative federal-state cost-sharing arrangements are crucial to ensure a unified national strategy, optimize resource allocation, and provide equitable access to support and treatment across all communities.
• Championing equity and inclusion: Addressing weight-based discrimination and dismantling structural barriers, especially for women who face disproportionate economic penalties, will unlock significant workforce potential, reduce reliance on disability support payments, and foster a fairer, more productive society.

The report notes: “Comprehensive investment in prevention and treatment represents not a cost but a strategic investment in Australia’s fiscal sustainability, workforce productivity, and population health—with any delay only increasing future costs.”

Dr Lu concludes: “When we reduce stigma and enhance support, we do more than improve health – we maximise untapped economic potential.”

The study was funded by Eli Lilly and Company.