Published on 3 Nov 2025

Independent Evaluation of the Star Ratings for Residential Aged Care program

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Allen + Clarke evaluated Australia's Star Ratings for Residential Aged Care program, designed to empower older people with better information for care decisions. Through comprehensive research with residents and providers, we found the system has incentivized quality improvements but faces challenges including low consumer awareness and difficulty differentiating between facilities. Our recommendations provided a roadmap for enhancing the system's effectiveness, ultimately amplifying residents' voices and strengthening transparency in the aged care sector.

Key Takeaways:

  • Star Ratings successfully motivated aged care providers to improve the quality of care they provide, demonstrating its effectiveness as a quality improvement mechanism.

  • Consumer uptake faced some barriers, with only 7% of surveyed residents aware of Star Ratings when entering care.

  • Focused engagement with Aboriginal and Torres Strait Islander residents highlighted critical gaps in measuring cultural safety across Australia's aged care landscape.
Read the full report here
Our work offered a practical roadmap for targeted improvements that will increase consumer awareness and confidence in the system. Most importantly, we amplified the voices of residents themselves—ensuring future improvements genuinely reflect their priorities and experiences.

Putting the Stars to the Test

The Australian Department of Health, Disability and Ageng sought to understand if their recently implemented Star Ratings system was achieving its goals.

We developed a comprehensive research strategy that captured lived experience voices across the sector: Our approach included:

  • Ethics - approved consultation with current and prospective aged care residents to understand their level of awareness of and engagement with Star Ratings, and to explore their decision making with regards to choosing an aged care home. 

  • National surveys to capture voices of aged care consumers and the broader sector across the country. 

  • Analysis of Star Ratings performance data to identify trends and impacts. 

  • Workshops with specialised service providers, including Aboriginal and Torres Strait Islander aged care services. 

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Star ratings drove quality improvements but consumer barriers persist

We found that Star Ratings has incentivised the residential aged care sector to make improvements in care quality, and it is becoming a more reliable tool for supporting informed decision-making and monitoring of quality and safety. However, consumer awareness remained low, with only 7% of surveyed residents aware of Star Ratings when entering care.

We identified several key challenges:

  • Consumers struggled with the system's complexity. 

  • Ratings clustered around 3 - 4 stars, making meaningful comparisons difficult. 

  • Cultural safety aspects weren't adequately captured. 

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Strengthening the Ratings Framework

Our evaluation provided an evidence-based foundation for system enhancements that will benefit thousands of older Australians making important decisions about their care. Star Ratings is an important commitment by the Australian Government and has supported increased transparency and quality.

We recommended:

 

  • Raising awareness of Star Ratings, including through national communications campaigns. 

  • Introducing half-star ratings for better differentiation. 

  • Enhancing transparency around compliance issues. 

  • Integrating cultural safety measures. 

  • Expanding staffing metrics to include workforce stability and specialised qualifications. 

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