The aged care Star Ratings are changing – here’s why

Key points:

• Star ratings for residential aged care homes are changing to a redesigned Compliance rating and incorporating care minute targets for Staffing ratings from October 1, 2025
• 271 stakeholders informed the design changes for the aged care Star Ratings system
• You can use the Find a Provider tool on the government website to gauge a provider’s quality of care

The Star Ratings system debuted in December 2022, and it was designed to help families find high-quality aged care providers.

The five-star scale was introduced in response to the Royal Commission into Aged Care Quality and Safety. It was meant to distil complex care metrics — Resident Experience (33 per cent), Compliance (30 per cent), Staffing (22 per cent) and Quality Measures (15 per cent) — into a digestible score.

Last week, the Australian Government Department of Health and Aged Care unveiled the Design Changes for Star Ratings for Residential Aged Care – Consultation Findings Summary Report.

The new report, informed by 271 stakeholders, including older people, families, providers, and advocates, confronts the widely reported issues with the Star Rating system.

A striking revelation to emerge from the report was the push for providers to be held accountable throughout the system.

Over three-quarters of the cohort demanded a provider’s Compliance rating drop across all its homes if it was issued a formal regulatory notice for significant or systemic non-compliance.

Although 64 per cent of providers were supportive of the measure, they cautioned that home-specific factors, like a good manager or unique challenges, often outweigh corporate oversight.

They wanted to draw a line in the sand between minor mistakes and major breaches, such as neglecting resident safety, to avoid unjust punishment. The report acknowledges this but leaves the concern unaddressed.

Staffing, the lifeblood of aged care, emerges as another flashpoint. The consultation found that 75 per cent of stakeholders supported a cap of two stars on the Staffing rating for homes failing to meet both care minute targets — the mandated hours of direct care per resident.

Among stakeholders, 87 per cent expressed support for incorporating the 24/7 registered nursing requirement into the Staffing rating, with many advocating a two-star cap for non-compliance.

Yet, rural providers cried foul: workforce shortages, not negligence, often thwart them. They begged for exemptions, transparently flagged, lest they’re crushed by urban-centric rules.

Beneath these reforms lies a quieter, yet electrifying, thread: data integrity. Stakeholders didn’t just want new rules — they demanded the numbers be trustworthy.

The Staffing rating’s potency, they argued, hinges on accurate, reliable care minute data, especially when self-reported by providers.

Two-thirds insisted that Compliance ratings rebound instantly once non-compliance is fixed, not linger in purgatory for 1 – 3 years.

The report’s call for transparent regulatory notices — 75 per cent want System Governor notices published, 85 per cent demand financial non-compliance hit ratings — doubles down, promising a window into a home’s soul.

The consultation leaves that gauntlet on the table, a test of whether the system can finally earn trust.

Finally, the report hints at a design revolution: half-star ratings and richer data. A narrow 51 per cent endorsed half-stars for the Overall Star Rating, envisioning a ladder of incremental progress — 3.5 stars as a reachable rung, not a distant five.

The push for systemic accountability could expose corporate culprits, staffing reforms might ground care in reality, and data integrity could rebuild trust among stakeholders. However, the report isn’t a one-size-fits-all solution for the sector.

The consultation’s 271 voices have spoken, and their hopes and fears are now in the government’s hands. This year has set the stage for significant reforms, aimed at making the landscape easier to navigate and safer for those seeking quality care.

Source:
This article was originally published on https://www.agedcareguide.com.au/talking-aged-care/the-aged-care-star-ratings-are-changing-heres-why. Reproduced with permission of DPS Publishing.
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