Feature article

Who pays for rest home care in NZ?

Understanding residential care funding

12 December 2025

AI summary

Funding for rest home care in New Zealand depends on your financial situation. The government's Residential Care Subsidy may cover costs if you pass a needs assessment and a financial asset test. The key asset threshold for those 65+ is $291,825.

If your assets are over the limit, you must pay privately. Homeowners who don't qualify may be eligible for an interest-free Residential Care Loan. Be aware of strict gifting and deprivation rules designed to prevent asset reduction.

What we’ll cover:

The three ways rest home fees are paid

1. Full government funding (Residential Care Subsidy)

2. Full private payment

3. The Residential Care Loan

Financial thresholds: The asset test

Age 50-64

Age 65+

Age 65+ with partner staying at home

Your two options:
	What is counted in your assets?	The maximum limit you can have
Option 1: Lower limit	Option 1: Lower limit	Everything but your family home and car.	Everything but your family home and car.	Your other assets must be $159,810 or less.	Your other assets must be $159,810 or less.
Option 2: Higher limit	Option 2: Higher limit	Everything, including the value of your family home and car.	Everything, including the value of your family home and car.	Your total assets must be $291,825 or less.	Your total assets must be $291,825 or less.