79310

AUSactive Chief Executive Barrie Elvish has taken aim at the Federal Government’s weekend announcement of an additional $8.5 billion injection into Medicare account - quickly endorsed by the Coalition - likening the funding to “applying a Band-Aid to repair a broken leg”.

Commenting after the weekend announcement, Elvish advised “at first glance this seems a reasonable investment (and election pitch) in improving the health and wellbeing of Australians while simultaneously easing the ‘cost of living pressures’ we constantly hear about, but in reality it’s just kicking the can down the road.

“As an undergraduate studying Economics 101 I don’t remember a lot but one message stood out loud and clear - every economic challenge has two interrelated factors, supply and demand.

“It seems our economists in (the Federal Departments of) Treasury and Health are fixated in attacking solely the supply factor whereas investing in prevention and keeping people out of the health system and thereby reducing demand would deliver compound benefits.”

Elvish presented evidence that “the economics of exercise are compelling”.

60% of Australians are overweight or obese, 75% fail to meet physical activity guidelines and inactivity costs the economy $14.1B annually. Workplace burnout and mental health issues cost between $12.2 and $22.5B including absenteeism, presenteeism, and lost productivity.

Sydney University preventive health advocate and physician, Professor Luigi Fontana, estimates focusing on prevention over treatment could save Australia $30 billion annually.

The total annual health budget is about $124 billion, but less than $2 billion is directed towards preventive health, with the majority going to Sport.

Yet the government’s own Health Policy Papers recommend increasing preventive health expenditure from the current 1% to 5% by 2030 acknowledging that for every $1 invested in preventive health, there’s a $14.30 return. Imagine the savings to taxpayers generated by this investment.

Demonstrating the Economics of Exercise AUSactive’s Active Body, Healthy Mind Budget submission calls on the Federal Government for:

• Means-tested Physical Activity Vouchers; annual vouchers valued between $500 and $1,000, means-tested per adult, to remove financial barriers to physical activity. Data shows that cost is the most significant barrier for 72% of non-health club users in Australia. Research shows even a 10% reduction in health club membership fees could increase health clubs’ participation from 23% to 35%, generating $425 million in healthcare savings and $913 million in productivity gains. This would also prevent 59,000 disease cases, boost consumer spending by $1.5 billion, and create 31,300 new jobs.

• FBT Tax Reform for Workplace Health; to bolster small businesses and increase workforce productivity, remove existing workplace discrimination that results in some employers being able support their staff’s physical wellbeing without being liable for fringe benefits tax (FBT), while others cannot. Exempting health club memberships from FBT universally would align with preventive health strategies and also support small businesses and boost workplace productivity and support small businesses. The original FBT legislation comparing bending an elbow in a pub to bending an elbow with a barbell in a gym was ludicrous, it’s absurd that taxpayers can claim deductions for donations to health organisations but not for proactively improving their own health through gym memberships.

• Preventive Health spending; boost preventive health funding from 2% to 5% of the $124B health budget in line with the government’s National Preventive Health Strategy.

• National Health Campaign; a national public preventative health campaign akin to ‘Slip Slop Slap’ encouraging Australians to get off their backsides and move. A robust preventative health strategy running over five or so years would give the bean counters time to see budget savings flowing through, save lives, improve mental health, and slash billions in healthcare costs.

Research shows that physically active individuals:

• Are 15% less likely to develop depression
• Have a 35% lower risk of coronary heart disease
• Have a 50% lower risk of type 2 diabetes
• Research by Professor Brendan Stubbs in the ASICS Global State of Mind study shows exercise can boost mental well-being and increase productivity by 22.5%

Elvish added “our government - whichever one wins the election - needs to ‘walk the prevention talk’.

“It’s time to stop being a nation of spectators and become participants.”

Images: AUSactive Chief Executive Barrie Elvish (top) and in 2023 and 2024 AUSactive engaged Federal Parliamentarians in its Fit for Office campaign (below).

Related Articles

16th February 2025 - Sports Commission launches ‘Warm up with Winter Sport’ campaign

14th February 2025 - AUSactive launches network, administration and education program, ConnectX

12th February 2025 - AUSactive announces founding members of Supplier Advisory Group

29th January 2025 - AUSactive reveals dedicated Tai Chi Membership category

28th January 2025 - Aquamoves Shepparton maintains its AUSactive Quality Accreditation status for 2025

21st January 2025 - AUSactive calls for Coalition’s proposed tax deductions to include Fringe Benefits Tax exemption for gyms

5th January 2025 - Federal Assistant Treasurer targets gyms and wellness apps in warning on ‘subscription traps’

24th December 2024 - AUSactive seeks non-Executive Director

17th December 2024 - Australia’s $14 billion inactivity crisis prompts renewed AUSactive call for Federal Government-led preventative health campaign

16th December 2024 - AUSactive secures endorsement from Australian Sporting Alliance for People with a Disability

10th December 2024 - Looking to spearhead growth AUSactive names Mike Beeney as Western Australian Regional Manager

28th November 2024 - AUSactive commits to helping deliver ASC Play Well Program

20th November 2024 - Federal Parliamentarians join with AUSactive to launch 2024 Fit for Office challenge

9th November 2024 - AUSactive to rollout Million Moves initiative in Western Australia

11th October 2024 - AUSactive’s Barrie Elvish: Federal Government should not let Sports Commission run a physical activity campaign

1st July 2024 - AUSactive commends Queensland Government’s focus on keeping the state active

15th May 2024 - AUSactive disappointed over Federal budget failure to deliver on wellness

12th March 2024 - AUSactive’s call for fringe benefits fitness tax exemption in workplaces gets wider backing

14th February 2024 - AUSactive submission for 2024/25 Federal budget calls for tax deductibility for gym memberships

4th January 2024 - AUSactive identifies exercise for mental health as the year’s top fitness trend

22nd December 2023 - AUSActive’s Barrie Elvish ‘frustrated’ by physical activity and exercise levels shown in new ABS data

28th April 2023 - AUSactive Chief Executive says fitness can ‘save’ Medicare

---

Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.

Click here to view our subscription options.