Feature article

Who pays for rest home care in NZ?

Understanding residential care funding

12 December 2025

AI summary

Funding for New Zealand rest home care depends on your financial situation and requires a needs assessment. The government's Residential Care Subsidy covers costs if your assets are below set thresholds, such as $291,825 for a single person aged 65+.

If you don't qualify, you must pay privately or may be eligible for a Residential Care Loan. Strict gifting and deprivation rules prevent giving away assets to qualify. Due to the complexity, seeking professional financial advice is essential.

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.