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Feature article
Who pays for rest home care in NZ?
Understanding residential care funding
12 December 2025
AI summary
Understanding who pays for rest home care in NZ depends on your financial situation. Funding options include full private payment, an interest-free Residential Care Loan, or the government's Residential Care Subsidy.
To qualify for the subsidy, you must pass a needs assessment and a financial assessment. For those 65+, the key asset limit is $291,825. Strict gifting and deprivation rules prevent giving away assets to qualify. Due to the complexity, always seek professional financial or legal advice.
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
| 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. |
The income test
Gifting and deprivation rules
Final word on fees
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