Prime Minister Scott Morrison will announce a royal commission into the aged care system today.
Among the failings, which spanned a decade, were allegations that a 70-year-old resident was bashed to death by another patient, and a 99-year-old female resident was indecently assaulted by a male carer.
Following that scandal, the Government has been reviewing quality of care and regulatory processes in the sector.
The Prime Minister could no longer ignore the alarming number of aged care operators "flouting the law and putting lives at risk".
About 1.3 million older Australians use aged care services, costing the government $18.6 billion between 2017-18 alone.
Since that scandal, the health department has closed nearly one aged care service each month, while a growing number are failing to meet standards, Morrison said in a statement.
The commission will also examine the preparedness of the system to cope with an ageing population and increasing cases of dementia, and care provided to younger Australians with disabilities living in residential aged care.
"Whether there is a crisis in aged care or not is to be determined", Morrison said in a statement.
The majority of aged care is high quality but the royal commission will be a chance to have a "broader conversation" about what the community wants from aged care, chief executive Pat Sparrow said.
The prime minister said Australia was a world leader in aged care, and most operators and carers were outstanding.
Mr Morrison said the government also needed to prepare for a major increase in demand on aged care as the baby boomers age.
'But the best teams will always want to do better, and will always want to be honest about the performance of the sector as a whole'.
There is a growing number of services under sanction to improve their care.
The data also reveals that complaints to the Aged Care Complaints Commissioner about residential aged care reached 4300 last financial year, up from 3200 two years prior.
The Oakden scandal prompted calls for a royal commission into aged care.
Earlier this year, Labor leader Shorten said the opposition wanted to make aged care "a central national issue" but he was unconvinced a royal commission into the sector was warranted. "I think it's the tip of the iceberg", he said on ABC's Q&A program.