Understanding food labels

A food label is the information on a packaged food that tells you what is in the product and can help you make informed choices.

In Australia, packaged foods must follow certain labelling laws. This means they must include:

a Nutrition Information Panel (NIP)
an ingredients list (which is ordered from most ingredient, to least)
allergen warnings.

Food labels help you:

see what ingredients are in the product
compare similar food foods to help you choose healthier options
check if a food contains an allergen which may cause an allergic reaction.

Reading food labels can be tricky. Some labels give clear, regulated information, while others use marketing to make the product seem healthier than it is. Knowing what to look for can help you make better food choices in the supermarket.

How to understand food labels

What is a Nutrition Information Panel (NIP)?

A NIP is a Nutrition Information Panel. It's the part of the food label that shows the key nutrients in food. In Australia, the NIP includes:

energy in kilojoules
protein
fat – the total fat and the saturated fat
carbohydrates – the total carbohydrates and sugars
sodium.

NOTE: Fibre may be listed in the NIP but is not required by Australian law.

An NIP shows values in two columns:

per serve
per 100g or 100ml

Please note that the manufacturer chooses how many serves are in a food, so it's always important to check this.

Tips for reading an NIP label:

if you want to compare two food products e.g. two different yoghurts it is vital you use the per 100g column. This is because serve size may vary depending on the brand
for healthier packaged foods, look for foods that contain:
- less than 10g of total fat per 100g
- less than 3g of saturated fat per 100g
- less than 15g of total sugar per 100g
- less than 400mg of sodium. Less than 250mg is even better.

Some foods are naturally higher in fats but contain healthy fats too.

Look for:

cheese with less than 15g of total fat per 100g and lower in sodium
unsalted nuts, skipping those that have been caramelised or are honey-coated
milk, yoghurt or ice cream with less than 2g of total fat per 100g.

Fibre isn’t always listed on the NIP. Foods with more than 3g of fibre per serve are healthier choice. This is usually the only exception to using the per 100g column to compare products.

Did you know?

Added sugar in foods has many other names.

Look out for common variations listed in foods such as dextrose, fructose, glucose, golden syrup, honey, maple syrup, sucrose, malt, maltose, lactose, brown sugar, caster sugar, raw sugar.

Food packaging labels

Ingredients lists

Ingredients are listed from most to least by weight. Check the ingredients, especially the first 3 listed. If sugar, salt or fats are high on the list, it’s likely not the healthiest choice.

Foods like cereal or yoghurt may contain fruit or dried fruit. When looking at the ingredient list, if fruit is listed before any added sugar, it is a healthier choice than if sugar is listed before fruit.

Ingredient lists must also show if there are any allergens present in the food product. See the   Plain English allergen labelling (PEAL) section 4 for information on understanding allergen labels.

Health star ratings (HSR)

The Health Star Rating (HSR) is a label on the front of packaged food products. It gives a score between ½ and 5 stars, with 5 being the best.

The HSR can be helpful to guide you to better choices, especially when comparing two products e.g. two different types of muesli bars, or cereals. Aim to choose packaged foods with a HSR of 3.5 stars or above.

Note: The HSR is not currently compulsory for all food products.

Visit Health star rating system for more information.

Nutrition and health claims

Food products must follow laws before having health claims on their products.

A health claim shows the product or ingredient has a positive health effect in humans.

There are 3 health claims allowed on a food packages. These include: 

Nutrition content claims are made about a certain amount of an ingredient in a food product that can contribute to health. For example, some milk products can claim it is a “good source of calcium.” 
General health claims can be made after strong evidence showing a health impact from consuming a food or nutrient. For example, “calcium helps develop strong bones and teeth.”
High-level health claims are made when there is strong evidence from consuming a food or nutrient and its impact on serious disease. For example, “diets high in calcium may reduce the risk of osteoporosis.”

Plain English allergen labelling (PEAL)

New Allergen labelling rules started in 2021 and were updated in February 2024. These labelling rules state that allergen information is to be shown:

in a specific format and location on labels
use simple, plain English terms in bold font
general terms like nuts or tree nuts cannot be used. Specific nut types must be named - cashew, hazelnut, almond
general terms like cereals cannot be used. Specific cereal types must be named - oats, wheat
shellfish being replaced by two separate categories - crustacean and mollusc
wheat must still be declared even if it does not contain gluten
declaration of allergens used in processing aids
a 'contains' summary statement must be placed near the ingredients list
a separate allergen statement in addition to allergens declared in the ingredients list.

After 26 February 2026, every food product sold must have PEAL. From this date, stock without the new PEAL labelling will not be allowed on shelves for purchase.

Visit Food Standards of Australia and New Zealand for more information on allergen labelling requirements.

See Food Allergy Aware for more information on allergen information.

Good to know: other names for added sugar

Dextrose, fructose, glucose, golden syrup, honey, maple syrup, sucrose, malt, maltose, lactose, brown sugar, caster sugar, raw sugar.