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A $1.4 billion question: The case for a new tax on Australians
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I think passing it on to consumers is an assumed part of the idea; discouraging people from consuming drinks with added sugar, and thus discouraging companies from making and marketing such drinks.
One would hope so, yes. I don't disagree. But personally I think it's gonna go the same way as cigarettes and alcohol. Sugar is in everything, so the price of everything wil go up.
You don't have to apply the levy to everything. The proposal the article is about is specifically "a levy applied to non-alcoholic drinks with added sugar, such as soft drinks and most juices".