Feature article

Avoiding rest home fees in New Zealand

What is and isn’t allowed under the current rules

12 December 2025

AI summary

To get help with rest home fees, you must meet the Residential Care Subsidy asset test. For those 65+, the asset limit is $291,825. If a partner stays home, your house and car can be excluded, but other assets must be under $159,810.

You cannot avoid fees by gifting assets late due to MSD's strict rules:

- Over 5 years ago: $27,000/year limit

- In the last 5 years: $8,000/year limit

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.