A FiscalStar rating is a publicly-available, independent assessment of the financial sustainability of a council’s existing policy settings, indicated by reference to a number of categories and the assigning of up to five stars.

The rating is based primarily on information that is on the public record. A council's authorisation or input is not sought.

The rating aims to increase the information available to external stakeholders in relation to local government finances. In doing so, the rating takes the ratepayer perspective, and focuses on the stability and predictability – both recent and expected – of a council’s own revenue-raising effort.

The rating is not a credit rating. 

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An initial set of FiscalStar ratings for councils across Australia was published during 2007 and 2008. These initial ratings covered around 300 of the larger councils. 

FiscalStar’s ratings do not provide policy advice to councillors or their management teams. Instead, FiscalStar’s mission is to foster discussion between external monitors and local government regarding the meaning and measurement of financial sustainability, and to add to the incentives for improvements over time in local government financial reporting and governance.

FiscalStar’s methodology continues to evolve, including in response to feedback from councils. FiscalStar welcomes dialogue with local government to ensure that external assessments such as its own are valid and balanced – and deserving of credibility and acceptance within local government itself.