What is the Residential Care Subsidy?
In New Zealand, the Residential Care Subsidy is a form of government support that may help cover the cost of long term residential care, if you meet the eligibility criteria.
The subsidy is designed to support people whose care needs can no longer be safely met at home.
If you are found to be eligible, the subsidy is paid directly to the care provider and does not need to be repaid.
A needs assessment is always required before any application can be considered.
Who pays for rest home care in NZ: eligibility requirements
In New Zealand, people are responsible for the cost of their own residential care. However, some may be eligible for government help through the Residential Care Subsidy.
Eligibility is dependent on individual circumstances, including the outcome of a needs assessment and results of a financial means assessment.
Some people will be responsible for the full cost of care, while others may receive partial or full funding. Understanding eligibility requirements can help with forward planning.
Residential care means test: asset and income assessments
People are sometimes surprised by how much financial information is requested during this stage. However, this is a normal part of the process and is a standard part of understanding whether government funding applies to you, and what contribution may be required.
As part of the assessment, you may be asked to provide information such as:
- Savings and bank accounts
- Investments or shares
- Income, including pensions
- Life insurance policies with a surrender or cash asset value
- Loans made to other people (including family trusts)
- Assets such as boats, caravans and campervans
- Investment properties
Being asked for this information can feel uncomfortable or confronting, especially during a time of change. This step is not about judgment, it is about ensuring support is provided fairly and consistently.
Asset thresholds and exemptions for rest home subsidy
Asset limits and exemptions for the Residential Care Subsidy are set by Work and Income and can change over time.
What is counted, and what may be exempt, can depend on individual circumstances. For example, different rules may apply if a partner remains living independently.
For the most current information, it is best to refer directly to Work and Income. You can also read our article Explore your eligibility for the Residential Care Subsidy.
How to apply for a Residential Care Subsidy
For many families, applying for the Residential Care Subsidy happens alongside other care planning steps.
Step 1: Complete a needs assessment
A needs assessment is arranged through the local Needs Assessment and Service Coordination pathway (NASC) and confirms the level of care you or your relative may need.
Step 2: Apply through Work and Income
If the needs assessment confirms that longer term care is required, the next step is to make your application through Work and Income using the Residential Care Subsidy application process.
Step 3: Continue with care planning while the application is processed
It’s a good idea to keep copies of key documents during this stage while you’re looking at care options and making care planning decisions.
While you’re waiting for a decision on your application, you will generally pay the maximum contribution to the care home. It is important to get the application in as soon as possible as it will be backdated if it was received within 90 days of admission. You can refer to our subsidies and funding page for more information.
Taking the next step
Once you and your family/whānau understand how support and funding fit together, it becomes easier to focus on practical next steps.
When you’re ready, you can also book a visit to your local Bupa care home to ask questions about what’s included in standard care charges, what might be optional, and how billing typically works while applications are being processed. Our team will be able to help address any concerns or questions you might have.