The packaged food industry has fallen short of the Australian government’s expectations regarding the adoption of the health star rating system, prompting officials to contemplate whether it should become a compulsory measure. This decision comes over a decade since the initiative’s inception, with participation stagnating at a mere 37 percent—substantially below the anticipated 70 percent target set by the government.

In a previous consensus, food ministers from various Australian states and territories expressed their intention to enforce mandatory labeling should the industry not achieve the target by the specified deadline. As the deadline has now passed, the pressure mounts on policymakers to take decisive action.

“The government’s targets were extremely generous, yet the multibillion-dollar packaged food industry has not even come anywhere close to meeting them,” remarked Associate Professor Alexandra Jones of The George Institute. Her statement underscores a growing concern about the industry’s reluctance to voluntarily provide straightforward nutritional information.

The health star rating system was introduced with the intent to offer consumers a quick and easy way to understand the nutritional value of packaged foods, promoting healthier choices. However, with such a low level of adoption, the system’s effectiveness is being questioned, and the government is poised to make a pivotal decision on its future implementation.

“Simple nutrition information shouldn’t be optional.

“Shoppers have a right to clear information that helps them quickly and easily understand the healthiness of what’s available on supermarket shelves.”

What is the health star rating system?

The health star rating system rates the overall nutritional profile of a packaged food product from 0.5 to 5 stars.

Manufacturers input the nutritional information of their product on a government website, which uses an algorithm to calculate a rating between 0.5 and five stars.

The algorithm gives points for protein, fibre, fruits, vegetables, nuts and legumes and removes them for saturated fat, sugar and salt.

Consumers ideally then use the rating to compare similar products and ultimately make healthier choices.

However, experts say the ability to compare products is limited as only a third of products currently feature a rating.

And unsurprisingly, it’s being exploited as a marketing tool, with five-star products far more likely to feature the rating (61 per cent) compared to half-star products (16 per cent).

VicHealth chief executive Professor Anna Peeters said the findings highlight an opportunity to strengthen food labelling in Australia.

“In Australia, ultra processed foods contribute 42 per cent of the population’s daily energy intake and more than 60 per cent of supermarket shelf space is taken up by discretionary foods,” Peeters said.

“This is an opportunity for government, industry and the community to align on creating a fairer, more transparent food system that supports health and wellbeing.”

When is the system likely to be mandated?

Jones said ministers should be able to approve the regulatory standards by this time next year.

She urged them to commit to the time frame to avoid further delay.

Food Standards Australia New Zealand told 9news.com.au it is continuing preparatory work for a mandated system.

“Food ministers are expected to receive the final uptake figures in early 2026, along with an update on our preparatory work,” a spokesperson said in a statement.

“With this information, food ministers will decide whether to ask FSANZ to formally raise a proposal to consider mandating the HSR system.

“If asked to raise a proposal, we will be required to follow the legislated processes for changing the Food Standards Code as outlined in the FSANZ Act, which includes public consultation.

“FSANZ would progress this work as a matter of priority.”