The decision announced yesterday followed another full audit of the home after the 100-bed facility appealed an earlier decision by health authorities to revoke its accreditation and funding from September 17 if standards had

not improved.

Aged Care Standards and Accreditation Agency spokesman Chris Falvey said standards had "significantly" improved compared to a July inspection that failed the home in 33 of 44 minimum standards of care.

"We did another full audit of the home and that audit found, as a result of all the actions taken by the provider, including bringing in substantial resources, they had restored the level of care," he said.

"We will continue to monitor the home. The challenge for them now is to sustain those improvements.

"We will continue to very closely monitor them through a combination of announced and unannounced visits and we will also conduct another full audit in six months."

The "strongest ever" sanctions imposed on an aged care facility were placed on Kirralee in July.

They included a reduction in the number of beds, the appointment of more specialist staff and an administrator to oversee its operations.

Police were also asked to conduct an investigation.

Minister for Ageing Justine Elliot said the Department of Health and Ageing was still working with police but no charges had been laid.

"We make no apologies for the tough action as the welfare of residents is our first priority," she said.

Ballarat MHR Catherine King said she was pleased with the news.

"Residents and their family members have been very concerned about what is happening at Kirralee and I am pleased that progress has been made," she said.

"The staff and management have worked constructively with the Aged Care Accreditation Agency towards complying with all 44 accreditation outcomes."

The July 19 report that sparked Kirralee's troubles will remain secret until the home has satisfied authorities standards have improved.

Kirralee director Arnan Rouse did not return calls yesterday.