Blue Care, which is owned by the Uniting Church, will close its Millbank facility of 48 single rooms in Bundaberg, 364km north of Brisbane.
Blue Care has been relocating elderly residents since 21 March and is not taking any admissions.
The Not For Profit said the “full closure” of the facility would not happen until the residents had suitable accommodation.
Describing it as a “planned, controlled and respectful closure”, Blue Care said arrangements were also being made for the 48 staff members.
“While disappointing for Blue Care, our people, residents and their families, we acknowledge the impact of COVID-19 on the aged care workforce as a whole and many regional towns in particular,” a spokesman said.
“Our facility at Millbank is old and requires significant investment in refurbishment to bring it up to the standard required to accommodate the increasing acuity in residents entering residential aged care.”
In January 2017, Blue Care moved 36 residents out of Millbank when it was a 90-bed facility.
The Aged Care Quality and Safety Commission has accredited Blue Care Bundaberg Millbank Aged Care Facility until 4 December.