Feature article

Who pays for rest home care in NZ?

Understanding residential care funding

12 December 2025

AI summary

Who pays for rest home care in NZ depends on your financial situation. The main options are the government's Residential Care Subsidy, private payment, or a Residential Care Loan.

To receive the subsidy, you must pass a needs assessment and a financial test, with a key asset threshold of $291,825 for those 65+. If you don't qualify, you'll pay privately. Strict gifting and deprivation rules apply, so always seek professional financial or legal advice.

What we’ll cover:

The three ways rest home fees are paid

1. Full government funding (Residential Care Subsidy)

2. Full private payment

3. The Residential Care Loan

Financial thresholds: The asset test

Age 50-64

Age 65+

Age 65+ with partner staying at home

Your 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.