.jpg?w=1440&fit=max)
Feature article
Avoiding rest home fees in New Zealand
What is and isn’t allowed under the current rules
12 December 2025
AI summary
Qualifying for the Residential Care Subsidy to help with rest home fees requires meeting a strict asset test from MSD. The main asset threshold for a single person is $291,825.
Gifting assets to qualify is restricted by "anti-deprivation" rules. Gifting is limited to $27,000 per year (more than 5 years ago) or $8,000 per year (within the last 5 years).
If you don't qualify, a Residential Care Loan may be an option. Always seek professional advice.
What you’ll learn
How the Residential Care Subsidy works
Current asset thresholds (2025)
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. |
Can you avoid rest home fees by gifting assets?
Gifts made in the last five years are subject to a strict limit of $8,000 per year combined. Any excess amount is still counted toward your assets.
The limits
Fair value check
Legitimate ways to avoid rest home fees
Strategies that do not work
If you don’t qualify straight away
Don’t expect loopholes
Author
