Gen Y becoming diabetes generation:

The alarming report, entitled "Diabetes: the silent pandemic and its impact on Australia", has prompted some of Australia's leading research and consumer advocacy groups to demand a renewed focus from the federal government on the health issue.

Diabetes Australia CEO Lewis Kaplan said it should be an immediate priority to recommit to the United Nations resolution to develop a formal national action plan to tackle diabetes.

"Time is of the essence because, unlike other developed nations (and) despite agreeing to these global recommendations, Australia has failed to take comprehensive action and implement change," he said.

It is estimated that, by 2025, Type 2 diabetes will triple in prevalence and affect three million Australians.

However, Type 2 diabetes is potentially preventable in many people.

The report says there is a continuing rise in the occurrence of Type 1 diabetes, especially among children aged up to four years, although it is unpreventable.

It said prevalence of Type 1 diabetes in Australia was one of the highest in the world and was increasing at about three per cent a year.

The report's lead author, Jonathan Shaw from the Baker IDI Heart and Diabetes Institute, said the future was not looking positive.

"What is critical now is for us to take urgent responsibility and act firmly and fast to contain the significant burden our younger generations and children are set to endure," Associate Professor Shaw said.

"The battle against diabetes requires concerted efforts on a number of fronts - strategies to slow down the rapidly rising number of those developing the disease and ensuring those living with diabetes are able to manage this insidious condition effectively.

"We must also do everything we can to fully understand diabetes via research."

The report says 275 Australians are diagnosed with diabetes every day, which can result in visual impairment, kidney disease or limb amputation.

It says while the current estimated annual health bill for diabetes was more than $6 billion, it would increase dramatically as more people were diagnosed.

"Considering diabetes entirely a matter of personal responsibility will certainly fail to address this public health challenge," Prof Shaw said.

"A well-planned and coordinated way to reach all levels of society is now critical for the future of this country."

Representatives from Baker IDI Heart and Diabetes Institute, Diabetes Australia, the Juvenile Diabetes Research Foundation and Novo Nordisk launched the report in Canberra on Wednesday.