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 Sports tax break a healthy idea for children 

Sports tax break a healthy idea for children

25 Oct, 2009 10:13 AM
AS MORE research warns us of the worsening epidemic of obesity and related illnesses, such as diabetes, it is clearly time for a hands-on, pragmatic approach to tackling the problem early.

News that the Henry tax review is considering providing tax incentives for families who pay for organised sport for their children is a welcome, innovative move.

It is a simple and ultimately cost-effective proposal.

We know that the economic cost of ill health is spiralling. The total cost of obesity in Australia last year including health care, lost productivity and carers' costs was estimated to be about $58 billion.

Alarmingly, the latest data from the International Diabetes Federation reveals that more than 285 million people worldwide now live with diabetes. This number is expected to explode to 435million by 2030.

Research also tell us that children from poorer backgrounds miss out on prevention. Why? Because playing an organised sport requires money: the costs of uniforms, fees, shoes, racquets, dancing shoes, costumes and travel expenses add up.

On the ground, sports organisations face rising insurance costs and reduced sponsorship. The fall-out is a drop in enrolments to organised sport.

Governments often reason that school sport programs provide children with the activity they need. While there are many such programs offered and they are most welcome it is up to schools to organise them and the staff needed to run them, leaving a system that can be piecemeal and dependent on school resources. And parents are again often relied on for transport and to carry the cost of events outside school grounds.

A number of countries are introducing similar tax incentives to encourage organised sport.

Britain has a free swimming program. In Canada, a $150 tax credit was introduced in 2005 to help register children in sports clubs. Two years later, the Nova Scotia government introduced a non-refundable tax credit of up to $500 to cover fees to enrol children younger than 16 in physical activity.

We have been told this ''ground-breaking'' tax scheme should be assessed before Australia puts its toe in the water. The Canadian scheme has been running now for four years; how long does it take to make a judgement?

We desperately need to change attitudes on fitness. One of the best ways is to instil in young children a sense of health and wellbeing, of social inclusion and of team spirit through organised sport.

There is nothing more gratifying to a parent than watching their child conquer a sporting skill, whether it be their first strokes in a pool, a ballet performance or in a team effort on the playing fields.

And there is nothing more gratifying to a child than to have the opportunity to show a parent what they're made of.

A financial incentive to help get their kids active is by no means a money-grabbing exercise. It would address a growing problem in the nation's health and wellbeing and provide the lifeline that sports organisations need.

If we can provide tax incentives for computers for children, bonuses for babies, a stimulus for insulation and rebates for solar panels; if we can seriously be considering tax incentives to quit smoking, go to the gym or walk to work; then we should take urgent action to encourage healthier lifestyles at a much earlier stage of people's lives.

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