Feature article

Avoiding rest home fees in New Zealand

What is and isn’t allowed under the current rules

12 December 2025

AI summary

Understanding New Zealand's Residential Care Subsidy is crucial for managing aged care costs. To qualify, your assets must fall below specific thresholds, such as $291,825 for a single person over 65.

You cannot avoid fees by simply gifting assets due to strict MSD "anti-deprivation" rules. Gifting is limited to $8,000 per year in the five years before applying. Legitimate strategies include early planning and prepaying funeral costs. If you don't qualify, a Residential Care Loan may be an option.

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

You are given 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.