Feature article

Avoiding rest home fees in New Zealand

What is and isn’t allowed under the current rules

12 December 2025

AI summary

The Residential Care Subsidy helps with rest home costs but has strict financial tests. For a single person over 65, the asset limit is $291,825.

Gifting assets to qualify is restricted by "anti-deprivation" rules, which limit gifts to $8,000 per year in the five years before applying. Legitimate strategies include keeping the home for a partner and planning early. If you don't qualify, you can reapply once assets are below the threshold or explore a Residential Care Loan.

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.