The tax plan, put together by the Obesity Policy Coalition in Australia, limits the percentage of saturated fat in foods.
The fat tax will apply to all foods that contain more than 2.3 percent saturated fat, including oils, meats, cheeses and processed foods.
Overweight Australians are 63 percent of the population, and Obesity Policy Coalition spokesperson Jane Martin said that previous policies encouraging physical activity did not decrease the amount of obese people -- it just stabilized the rate.
The money from the tax will go toward lowering the price of healthy foods.
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