The Commonwealth Ombudsman has raised concerns regarding the reliability and effectiveness of Australia’s current aged care star ratings system, indicating that it may not provide sufficient information for families to make informed decisions about aged care services. Since January 2024, public concerns have surfaced over whether the star ratings, introduced by the Department of Health and Aged Care, adequately reflect the quality and safety of aged care facilities.
Originally established in response to the Royal Commission into Aged Care Quality and Safety, the star ratings system—active since December 2022—aims to help Australians assess the performance of aged care providers. Each provider receives an overall rating from one to five stars, based on four factors: resident experience (33%), compliance (30%), staffing (22%), and quality measures (15%).
Despite these efforts, the Ombudsman noted that the current system may lack transparency, especially concerning compliance information. The Aged Care Quality and Safety Commission, responsible for regulating aged care services, does not always adjust a provider’s rating for instances of non-compliance that are managed informally. Consequently, providers may maintain higher star ratings even if they are not consistently meeting care standards.
Further complicating the issue, the Ombudsman’s office found the Find a Provider Tool on the My Aged Care website challenging to navigate. Users seeking a comprehensive understanding of ratings may need to reference several resources, including a 50-page Star Rating Provider Manual. A need for accessible and comprehensible information was emphasized, alongside clearer details on how individual ratings are determined.
As an independent review of the star ratings system is currently in progress, and legislative changes through the Aged Care Bill 2024 are being considered, the Ombudsman refrained from launching a formal investigation. The bill, introduced to Parliament on 12 September 2024, would designate the Secretary of the Department of Health and Aged Care as the System Governor, empowering the department to enhance data verification procedures for star ratings.
The Ombudsman has committed to monitoring the review’s outcomes and proposed legislative adjustments to ensure the star ratings system evolves to meet public expectations.
