The nursing home was audited by the Department of Health in October and informed in December it would not receive funding for any new residents until May.

It must also appoint an advisor to help it meet its clinical responsibilities and provide additional training to staff.

BaptistCare Griffith nursing home also failed a snap audit in August this year and faced similar sanctions.

Bupa apologised to residents and their families and said it was committed to taking action immediately.

"We sincerely apologise that we have failed to live up to the high standards you rightly expect of us and that we set for ourselves," a letter to residents' families read.

According to an audit report completed by the Australian Aged Care Quality Agency, the nursing home did not meet 13 of 44 expected outcomes.

Those outcomes included clinical care, medication and pain management, mobility, dexterity and rehabilitation.

"Information about changes in clinical condition are not always effectively communicated," the report read.

"Some care recipients/representatives interviewed are not satisfied with the clinical care being provided to the care recipient and some express concern about staff clinical knowledge and skills."

The report said there were no systems in place to ensure residents' medication was managed safely and correctly.

It said the home's monitoring system failed to identify errors related to medication administration or storage of medication.

The auditors said they saw incidents of physical and verbal aggression and care recipients were not satisfied with the management of such behaviour.

Residents were not provided with rehabilitation and were forced to pay for private physiotherapy instead, the report read.

"Management and staff acknowledge there is insufficient staff allocated to support care recipient mobility and dexterity," the audit read.

The home was also criticised for not routinely including cultural celebrations relevant to residents and for a lack of up-to-date training for infection control and manual handling.

The interim chief operating officer of Bupa Australia Aged Care, Carolyn Cooper, apologised to residents and their families.

"We are deeply sorry that the home has been sanctioned by the Department of Health – this does not represent the high standard of aged care that our residents deserve," she said.

"We are committed to making improvements at the home and regaining the trust of our residents and their families."

Ms Cooper said the home was working with the department to address the issues identified in the report and would keep residents and their families updated.

"We have appointed consumer champion Beth Wilson, who is the former Health Services Commissioner of Victoria, to consult with residents and families at our care homes to consider how to improve our focus on what matters to residents, and their families," she said.

"Ms Wilson visited the Calwell care home on the weekend to meet with residents and their families.

"We encourage any residents or family members with concerns to contact us on 1800 804 888 or email bupaagedcarefeedback@bupa.com.au."