The packaged food industry has failed to reach the government's target for uptake of the health star rating system, and government will now decide if it should be mandated.

More than 10 years after it was first launched, uptake of the system has plateaued at 37 per cent - well below the government's 70 per cent target.

Food ministers across Australian state and territory governments have previously indicated labels would be made mandatory if the industry failed to meet the target by today's deadline.

"The government's targets were extremely generous, yet the multibillion-dollar packaged food industry has not even come anywhere close to meeting them," Associate Professor Alexandra Jones from The George Institute said.

"Simple nutrition information shouldn't be optional.

"Shoppers ha

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