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 key for managing aged care costs. To qualify, you must meet strict asset thresholds, such as $291,825 for a single person over 65.

Strict "anti-deprivation" rules prevent large-scale gifting to reduce assets. Limits include:

- $27,000 per year (gifts made over 5 years ago)

- $8,000 per year (gifts in the last 5 years)

Early planning is essential, as late-stage gifting is ineffective. A Residential Care Loan is an alternative for those who don't initially qualify.

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.