The Aged Care Standards and Accreditation Agency has identified potential concerns with 30 out of 44 areas at the Patricia Gladwell Aged Care Home, a 60-bed nursing home in Brunswick.
Some of the deficiencies identified by the agency involve health and clinical care, nutrition and hydration, continence management, mobility and rehabilitation, infection control, catering and cleaning.
The government has told the aged care facility to appoint a nurse adviser for the next six months to improve its standards.
The Accreditation Agency said residents were not receiving appropriate care and services, placing them in "serious risk" in relation to their health, safety and wellbeing.
The nursing home, which has appointed a new chief executive and a new director of nursing, will be visited daily by the agency while residents remain under serious risk.
"We make no apologies for the tough action that is being taken in relation to this or any other home where potential problems with care are identified," Mrs Elliot said.
"Older Australians in aged care deserve good care and any home failing will be dealt with."
It is the third nursing home in Victoria to be placed under sanction by the federal government since November last year.
The Bridgewater aged care facility in Roxburgh Park and the Kirralee Residential Aged Care Facility in Ballarat have also been sanctioned.
