Aged Care Facilities/ Nursing Homes

In order to enter care in a resthome you will need to be assessed and the doctor can refer you to an assessor. This comprehensive assessment will show if you are eligible for residential care.

You are often required to pay for or contribute towards your own care. While some people pay privately for their care, some may receive some subsidised support. The assessment company will assess if you are entitled to this subsidy

Pro’s

• Companionship of other residents
• 24 hour staffing 
• Nurses available
• Activities and interests
• Security

Con’s

• Less flexibility due to scheduling of tasks e.g. shower time, breakfast time
• One of many clients you may need to wait
• Unfamiliar surroundings at first
• May be moving away from the area family or friends are in

Funding

The information below was provided by the ministry of health.

Who can get it

Anyone who has been assessed as meeting the below criteria by an assessment agency:

• you are assessed as needing long-term residential care in a hospital or rest home
• you need this care for an indefinite length of time
• the hospital or rest home is approved
• you are aged 65 or older (if you are 50-64 years old other conditions apply so please contact us).
• It also depends on:
• how much you and your spouse or partner earn
• any money or assets you and your spouse or partner have.

How much you can get

If you get a benefit or pension, most of it goes to the hospital or rest home to help pay for your care. You keep a personal allowance.

How to apply

You will need to get in touch with a needs assessor in your area. To find out who to contact you can:

• call the Residential Subsidy Unit on 0800 999 727 FREE or 09 845 7743
• go to the Ministry of Health website

Assets

If you’re 65 years or over, to qualify for the Residential Care Subsidy the value of your assets must be equal to or below the threshold for your circumstances.

People who:

• don’t have a partner or 
• have a partner who is also in long-term residential care
  • must have combined total assets valued at $218,598 or less to qualify for Residential Care Subsidy.

People who:

• have a partner who is not in care, can choose a threshold of:
  • combined total assets of $119,709 not including the value of their house* and car or
  • combined total assets of $218,598 which will include the value of their house and car.

If you meet the asset threshold, Work and Income will also complete an income assessment (more information about income below).

Please note that asset thresholds are adjusted at 1 July each year.

* The house is only exempt from the financial means assessment when it is the principal place of residence of the partner who is not in care, or a dependent child.

Assets we count include:

• cash or savings
• Bonus Bonds
• investments or shares
• life insurance policies
• loans made to other people (including family trusts)
• boats, caravans and campervans
• investment properties
• your house and car.

Assets we don’t count include:

• pre-paid funeral expenses for you and your partner of up to $10,000 each*
• personal belongings such as clothing and jewellery
• household furniture and effects.

* The funeral expenses can only be exempt if they are held in a recognised funeral plan.

Family home and personal vehicle

Your family home and personal vehicle are included as assets in the financial means assessment if:

• you don’t have a partner or
• both you and your partner are in long-term residential care or
• your partner is not in long-term residential care but you have chosen to have your assets assessed against the $218,598 asset threshold.

Gifting of assets

If you or your partner give away assets, they still may be counted as assets in your financial means assessment.
You can gift up to $6,000 within a 12 month period in each of the five years before you apply. This applies to each application for the Residential Care Subsidy.

For example, if both you and your partner apply for the Residential Care Subsidy then gifts of $6,000 each per year, can be excluded.
Gifts of more than $27,000 per year, per application* made before the five year gifting period, may be added into the assessment.
* For couples, gifting is $27,000 in total – not per person.

Gifts in recognition of care

Gifts in recognition of care of up to $6,000 for each year of care provided, can be made.
Gifts may also be excluded from the financial means assessment if they are made in the 12 months before the date of the assessment and meet other criteria.
Gifts made in recognition of care together with any other gifts must not exceed $30,000 in the five year gifting period.

Income contribution

Any income that you and your partner are able to receive will be used to determine the amount you contribute towards the cost of your care.

Income includes:

• New Zealand Superannuation, Veteran’s Pension or any other benefit
• 50% of private superannuation payments
• 50% of life insurance annuities
• overseas Government pensions
• contributions from relatives
• earnings from interest and bank accounts, investments, business or employment
• income or payments from a trust or estate.

Income doesn’t include:

• any money that your partner has earned through employment
• income from assets when the income is under:
• $963 a year for single people
• $1,925 a year for a couple when both have been assessed as requiring care
• $2,887 a year for a couple where one partner has been assessed as requiring care
• a War Disablement Pension from New Zealand or any other Commonwealth country.

Payments

The Residential Care Subsidy is paid directly to the rest home or hospital by the Ministry of Health. The amount of subsidy paid is the difference between the cost of your care and your assessed income contribution. Please talk with your rest home or hospital if you’re unsure what is included in the cost of your care. Generally, your income contribution is calculated using your annual income at the date you applied for a financial means assessment.

If you receive New Zealand Superannuation, Veteran’s Pension or any other benefit, most of this will go towards your care. You’re able to keep a personal allowance of $43.45 a week. You’ll also receive a clothing allowance of $272.50 a year.

You must continue to pay for your care until it’s established that you’re financially eligible for the Residential Care Subsidy.

If you have a partner living at home:

• they may get the Special Disability Allowance of $38.48 a week to help with extra costs
• they will receive an increase in their payments if they receive a benefit or pension
• they may qualify for a single rate of payment if they receive New Zealand Superannuation or Veteran’s Pension
• they may qualify for income support after you go into care if they aren’t currently receiving any payments from us.

Trusts/Estates

We will need more information if you or your partner have ever:

• transferred assets to a trust
• been the settlor, trustee or beneficiary of a trust or estate.

Outstanding Debts

Please pay your outstanding debts before you apply. If you’re unable to do this, they may be able to be deducted from your assets when the financial means assessment is completed.

Residential Care Loan

If your assets are above the threshold because you own your own home, and you have limited cash or other assets (excluding your home), you may be able to get an interest-free loan to help pay for your care.

Generally the asset limits for a loan are $15,000 if you’re single or $30,000 if you’re a couple both in care.

The loan is repayable when you sell your home, or 12 months after your death, whichever is the earlier.

If you want to apply for an interest-free loan there is an additional form to be completed – this is included in the Residential Care Subsidy Application form.