Last week, the Federal Government announced it would withdraw funding for Rosden Private Nursing Home in Burwood East after an audit uncovered "serious'' safety issues, including structural dangers, inappropriate storage of chemicals and privacy concerns.

Department of Health and Ageing state manager Jennifer McDonald could not confirm if the nursing home would be closed but said funding would cease on Wednesday.

Kerry Jordan, daughter of a resident, angrily defended the nursing home and spearheaded a petition asking the Government to reconsider its ruling.

"If I thought they weren't looking after my father, I'd be on them like a dog on a bone. I have never witnessed anything of concern and, in fact, my father has gained weight since he came here, after losing weight at other facilities. He's always shaved and showered, and the level of care is very good.''

Ms Jordan said she didn't know what she was going to do.

"There are some nursing home beds available, but if we don't take them now they will be snapped up like that. This is my father's home and I want to keep him here.''

Rosden Private Nursing Home has lodged an appeal against the department's decision and has already begun to address issues raised in the audit.

In a written statement, Rosden's management apologised to residents and families.

"We have been running aged-care facilities for almost a decade. Offering the highest quality care possible to our residents has always been our number one priority.

"But we recognise that the building at Rosden is old and this can make it difficult, despite the best efforts of our dedicated staff.''

Minister for Ageing Justine Elliot acknowledged that relocating residents from Rosden Private Nursing Home would be distressing but said it was an unsafe environment and action was warranted.