This report delves into the complex concept of a healthy and sustainable diet, emphasizing the need to integrate environmental considerations into food and health policies, using the Australian Dietary Guidelines as a basis. It examines the current national diet, detailing consumption patterns of the five food groups and comparing animal-based versus plant-based foods and discretionary food consumption. The report analyzes the causes of the gap between the recommended and current diets, highlighting issues in the food supply chain, greenhouse gas emissions, water usage, and the impact of agriculture and trade. It then formulates a national food policy, referencing the "NOURISHING" framework, and discusses policy actions to promote healthy and sustainable food systems, including government initiatives like the Australian Dietary Guidelines and other programs.