Obesity campaigners want sugary cereals to be slugged with GST, with all cereals currently exempt.
Experts are arguing cereals like Coco-Pops, Frosties and Froot Loops, are junk food.
There is also a new push to ban junk food ads from television.
Jane Martin, from the Obesity Policy Coalition, has told 2GB’s Alan Jones having high-sugar cereals GST-free is effectively a tax break.
“A lot of the composition of these foods is close to chocolate biscuits and lollies - and you certainly wouldn’t give that to your kids before they went off to school,” she said.
“It’s really important that we consider the messages that pricing is putting out. And the fact that these aren’t taxed does send the message that these [cereals] are OK.”