How does the residential care subsidy work for rest home care?

Common question · Elder Law · New Zealand · 23 October 2026

General information from Lawmateanz

In New Zealand, if you need long-term residential care in a rest home or hospital, you may qualify for a residential care subsidy, which helps pay for it.

First, a needs assessment must confirm that you need long-term care. Then Work and Income looks at your assets and income to decide whether you qualify.

If your assets are above a set threshold, you'll pay for your care up to a maximum contribution until your assets fall below it. Gifts made in previous years can be counted in the assessment.

Work and Income has current thresholds and forms, and a lawyer can help with asset and estate planning before an assessment.

Written by Lawmateanz, not by a lawyer. General information only, not legal advice about your situation. For advice about your own matter, talk to a lawyer.

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