Government policy
Fed Govt pays contractors nearly $3 million for Star Ratings advertising

The Department of Health and Aged Care has extended its contract with consumer analysis firm Fifty-Five Five to investigate ways to improve the Star Ratings system.

In June, we reported the Government has awarded Fifty-Five Five a $330,000 contract to see if the Star Ratings system was understandable and if it needed further promotion.

This week, the Government's tenders website shows the contract has been extended by $155,100 and will now run for another five months until the end of February 2025.

"This contract was extended to undertake further research to explore what improvements could be made to ensure Star Ratings is effective and meaningful for diverse audiences," a spokesperson for the Department of Health and Aged Care told The SOURCE.

Also published was a $2.64 million contract awarded to Mediabrands Australia, trading as Universal McCann, the firm responsible for placing all the Federal Government's advertising in the media.

In February 2024, the Department of Health and Aged Care awarded Allen and Clarke Consulting a $579,472 contract to conduct an 'Independent evaluation of Star Ratings for residential aged care' following concerns the ratings do not accurately reflect the quality of aged care homes.

A Star Rating system was a recommendation of the Royal Commission into Aged Care Quality and Safety to help consumers make informed decisions about aged care.

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