Beyond the Star Rating

How quality star ratings are calculated.

A detailed explainer of the government\u2019s Quality Measures star rating methodology: the 7 clinical indicators, risk-adjustment for resident case-mix, composite scoring, and what the numbers mean.

7 July 20269 minGovernment figures

Key takeaways

  • The Quality Measures (QM) sub-rating is based on 7 clinical indicators — falls, pressure injuries, weight loss, restrictive practices, and medication use. Lower is better for all seven.
  • Four of the seven are risk-adjusted to account for the complexity of each facility’s residents, so a home caring for very frail residents isn’t penalised for naturally higher incident rates. The other three — restrictive practices, polypharmacy and antipsychotic use — are reported exactly as recorded, with no adjustment.
  • This is why a 5-star home can have some unadjusted rates above the national average — after adjustment, their outcomes may be better than expected for their population.

The 7 quality indicators

The Quality Measures sub-rating is built from seven clinical indicators, each tracking a specific health and safety outcome. For all seven, a lower rate is better:

1
Pressure injuries% of residents with new or worsening pressure injuries (bed sores)
Indicates whether residents are being repositioned regularly and skin integrity is monitored
2
Restrictive practices% of residents subject to physical or chemical restraint
High rates may indicate staffing shortages or an over-reliance on restraint instead of person-centred care
3
Unplanned weight loss% of residents with significant unplanned weight loss
A key indicator of nutrition quality, meal assistance, and clinical monitoring
4
Falls% of residents who experienced any fall
Reflects fall prevention strategies, mobility support, and environmental safety
5
Falls with major injury% of residents whose fall resulted in fracture, head injury, or hospitalisation
More serious than the falls rate — indicates both prevention and response quality
6
Polypharmacy% of residents prescribed nine or more regular medications
High medication loads increase adverse drug event risk. Good facilities actively review and reduce medications
7
Antipsychotic medication% of residents prescribed antipsychotic drugs (excluding diagnosed psychotic conditions)
Antipsychotics are sometimes used to manage behavioural symptoms of dementia instead of non-drug approaches — a significant concern
On our provider profiles: The Quality Measures detail section shows each of these seven indicators with the facility’s rate compared to the national average. A percentile badge tells you whether the facility is in the “Better than average”, “Average”, or “Below average” range using the 25th and 75th percentile boundaries.
Mercy Place ColacQuality & safety

A real home from our data. A plain-language read on how its safety measures compare to the typical home.

Three safety measuresvs homes across Australia
Falls with major injuryfewer than most
Restrictive practicesin line with most
Unplanned weight lossbelow typical
← fewer, bettermore →
range where most homes sittypical homethis home

On falls with major injury, this home sits fewer than most homes. The other measures track the typical home.

Risk-adjustment explained

This is the most important and least understood part of the star rating system.

It applies to four of the seven indicators, not all of them.
  • Risk-adjusted: pressure injuries, unplanned weight loss, falls, major injury from a fall
  • Reported as-is: restrictive practices, polypharmacy, antipsychotic medication

Everything below describes how adjustment works for the first four. For the other three there is no adjustment, no expected rate, and no resident-mix explanation for a high number — what you see is what the home reported.

Different aged care homes look after very different populations. Some specialise in high-acuity dementia care, where residents are frail, cognitively impaired, and at high risk of falls. Others care for more independent residents who need less intensive support.

If we compared raw quality indicator rates without adjusting for this, facilities caring for the most vulnerable residents would always look worse— even if they were providing excellent care. That would create a perverse incentive to avoid admitting high-needs residents.

Risk-adjustment solves this by asking: “Given the mix of residents at this facility, what rate of falls (or pressure injuries, etc.) would we expect? And how does the actual rate compare?”

What factors are adjusted for

The government’s risk-adjustment model accounts for several resident characteristics:

  • Acuity — the overall complexity of care needs, measured through the AN-ACC classification
  • Age — older residents have higher baseline risks for most indicators
  • Cognitive impairment — residents with dementia or significant cognitive decline have higher falls and behaviour risks
  • Mobility — residents with limited mobility have higher pressure injury risk but potentially lower falls risk
  • Comorbidities — multiple health conditions increase risk across several indicators

The adjustment produces an expected rate for each indicator at each facility. The star rating is then based on how the actual rate compares to the expected rate, not to a flat national average.

How scores become stars

The journey from raw indicator data to a star rating involves several steps:

  1. Data collection: Each facility reports quality indicator data quarterly to the Department of Health and Aged Care.
  2. Risk-adjustment: Each indicator rate is adjusted for the facility’s resident case-mix, producing a risk-adjusted performance score.
  3. Composite score: The seven risk-adjusted indicator scores are combined into a single composite Quality Measures score. The exact weighting applied to each indicator is determined by the methodology, with more serious outcomes (falls with major injury, pressure injuries) carrying greater weight than less severe indicators.
  4. Star threshold bands: The composite score is mapped to a 1–5 star rating using threshold bands. These bands are set nationally and determine what composite score earns 1, 2, 3, 4, or 5 stars.
  5. Contribution to overall rating: The QM sub-rating is then weighted at 15% in the overall star rating calculation, alongside Residents’ Experience (33%), Compliance (30%), and Staffing (22%). Quality Measures is the lightest of the four inputs — worth half as much as compliance.

Worked example

Consider two facilities with different resident populations:

Facility A (high acuity)
Residents with advanced dementia
65%
Average AN-ACC classification
High
Actual falls rate
42%
Expected falls rate (risk-adjusted)
48%
Performance
Better than expected (42% vs 48%)
Facility B (lower acuity)
Residents with advanced dementia
20%
Average AN-ACC classification
Moderate
Actual falls rate
28%
Expected falls rate (risk-adjusted)
25%
Performance
Worse than expected (28% vs 25%)

In this example, Facility A has a higher raw falls rate (42% vs 28%) but scores better on the risk-adjusted measure. Given their very high-acuity population, a 48% falls rate would be expected — achieving 42% means they’re doing better than average for their resident mix.

Facility B, despite a lower raw rate, is actually underperforming. For their relatively healthy resident population, a 25% falls rate would be expected — their 28% suggests room for improvement in fall prevention.

This is why raw numbers can be misleading. A facility’s actual quality indicator rates should always be interpreted in the context of who they care for. Our provider profiles show the unadjusted rates alongside national averages, but the star rating itself uses the risk-adjusted methodology.

Unadjusted vs adjusted rates

On our provider profiles, the Quality Measures detail section shows unadjusted (raw) rates compared to national averages. The government’s QM star rating, however, uses risk-adjusted scores.

This can create apparent contradictions:

  • A facility may show above-average falls rates on our comparison chart, yet hold a 4 or 5-star QM sub-rating. This means their resident population is very high-risk, and after adjustment, their outcomes are actually good relative to what would be expected.
  • Conversely, a facility may show below-average rates on raw indicators but only score 3 stars on QM. This means their population is relatively low-risk, and after adjustment, their performance is only average.
How to use both: The unadjusted rates on our profiles tell you the actual experience at the facility — the literal rate of falls, pressure injuries, etc. that residents experience. The star rating tells you how that performance compares to what would be expected given the population. Both are useful. The raw rate tells you what daily life looks like; the adjusted score tells you whether the facility is doing well relative to the challenge it faces.

What this means for families

Understanding QM methodology helps you make better decisions:

  • Don’t panic at above-average raw rates in high-acuity facilities. Check the star sub-rating — if it’s 4 or 5 stars, the facility is performing well for its population.
  • Don’t be reassured by low raw rates alone. A facility caring for mostly independent residents should have low falls and pressure injury rates. Check whether their risk-adjusted performance (reflected in the star rating) is genuinely good.
  • Look at trends, not just snapshots. One quarter’s data can be noisy. Our provider profiles show quality measures over multiple quarters. A consistent trend is more meaningful than a single data point.
  • Pay attention to the most serious indicators. Falls with major injury, pressure injuries, and antipsychotic use are the most consequential for daily quality of life. Weight these more heavily in your own assessment.
  • Combine QM data with everything else. Quality measures are one sub-rating out of four. Use them alongside residents’ experience, staffing data, food spend, and — most importantly — your own observations during a tour.
Next step: Search for facilities in our provider search and explore the Quality tab on each profile. Compare the seven quality indicators, check the star trend over time, and use this guide to interpret what you see. Then read our Beyond the Star Rating guide for the full picture of aged care quality data.

Frequently Asked Questions

Disclaimer: This guide is for general information only and does not constitute financial, legal, or medical advice. Government rates and thresholds change periodically — always verify figures with Services Australia or a qualified aged care financial adviser before making decisions. Last verified: 7 July 2026.