Announcement date
28 October 2026
Link to announcement
https://www.foodstandards.gov.au/food-standards-code/proposals/p1067-health-star-rating-system
Problem being addressed
Poor diet contributes a significant cost to Australian and New Zealand economies. The estimated direct and indirect costs of overweight and obesity are $23.9 billion in Australia and $13.5 billion in New Zealand per year and is expected to rise. Many consumers understand the link between consuming a poor diet and the subsequent negative health implications. However, food choices are influenced by a range of factors, and individual choice is only one of them. Improving diets requires multiple complementary strategies that address individual behaviours, community influences, the food system and the wider food environment. Food labelling has a role in supporting consumers to make informed choices.
The Health Star Rating (HSR) system was introduced in Australia and New Zealand in 2014. It is currently a voluntary front-of-pack labelling scheme that rates the overall nutritional profile of packaged food and assigns it a rating from 0.5 to 5 stars. Consumer research shows high awareness of the HSR and most consumers agree the HSR makes it easier to identify healthier food.
Low uptake of the voluntary HSR system by industry limits effective consumer use of the system. While consumers often report the HSR has influenced their purchasing decisions, typically to encourage healthier choices, real-world data suggests the impact of the HSR on purchasing may be minimal. The HSR has appeared on less than 40% of intended foods in Australia and New Zealand since its implementation in 2014. This may influence findings as consumers cannot use the HSR if it is not displayed on the food they purchase.
Proposal
The Consultation Regulation Impact Statement (CRIS) considers 2 options to address the problem:
- Option 1: Maintaining status quo
- Option 2: Amending the Code to mandate the HSR system.
The net benefit of maintaining status quo (option 1) by definition is zero as it involves no change. However, maintaining status quo might cost consumers through the inconsistent availability of the HSR.
Option 2 considers the cost to industry of updating the labelling of each packaged food in the Australian and New Zealand food supply to display the HSR. This includes additional business costs such as staff time, updating record-keeping and IT systems, and engaging with consultants to adjust to the proposed changes. The CRIS also considers Government costs such as the provision of educational materials and cost to enforcement agencies.
Food Standards Australia New Zealand considers mandating the HSR system as proposed under option 2 will leave Australian and New Zealand consumers in a better position than under the status quo. The CRIS suggests that mandating the HSR system, combined with other measures, would better support healthier food choices and thereby assist in addressing the public health issues. However, it is expected that the consultation will gather additional information to improve the quality of the analysis.
Assessed Impact Analysis outcome
Compliant consultation RIS
Assessment comments
The consultation paper is open for submissions from 28 October 2026 to 23 December 2026.