What about the cost? | Who Can Get a Subsidy? | What Assets Can I Own? | If You 'Gift' Cash or Property

If You Own Your Home | If Your Assets Are Over The Limit

This is the question that concerns most people. If you need financial help to pay for long term residential care in a rest home you may qualify for a Residential Care Subsidy from the Health Funding Authority. Work and Income NZ will assist by assessing your income and assets. You can contact Work and Income NZ on their free phone number 0800 999 727 or see www.winz.govt.nz.

You may be able to receive a Residential Care Subsidy if:
- You have had an assessment of your individual needs that confirms you require long term residential care in a licensed rest home, and
- You need this care for an indefinite period, and
- You are aged 65 or older and the assets you own are within certain limits (see next section),

Or

- You are aged between 50 - 64, are unmarried and have no dependent children (you automatically qualify for the Residential Care Subsidy). Work and Income performs a financial means assessment of your income determine the amount you will need to contribute towards the cost of your care.

If you are 65 or older, to qualify for a Residential Care Subsidy the value of your assets must be equal to or below the appropriate threshold for your circumstances.

From 1 July 2010, people who do not have a partner, or have a partner who is also in long-term residential care, must have assets valued at $200,000 or less to qualify for a Residential Care Subsidy. This will increase to $210,000 from 1 July 2011.

From 1 July 2011, couples where one partner is not in care will have a threshold of: $105,000 not including the value of their house and car;

OR can choose a threshold (as above) which will include the value of their house and car.

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

Assets counted are things like;

- Cash or savings;

- Investments or shares;

- Loans made to other people (including family trusts);

- Boats, caravans;

- Investment properties;

- Your house and car (under certain circumstances).

Assets which Work and Income NZ does not include are:
- Your house, chattels and car if your partner or dependent child still lives at home
- Personal belongings such as clothing or jewellery
- Pre-paid funeral expenses for you and your partner of up to $10,000 each

If you or your partner give away cash or property, these are gifts and are counted as assets in terms of assessing whether you qualify for a Residential Care Subsidy.

However, gifts of up to $5,500 a year made in the five years before you apply for a financial means assessment can be excluded. Please note this amount is different from those allowed by Inland Revenue for tax purposes.

Gifts in recognition of care up to $5,500 for each year of care provided can be made by the person applying for the financial means assessment in the 5 years prior to admission.

Gifts made in recognition of care together with any other gifts must not exceed $27,000 per annum prior to the five year gifting period.

You can not get a subsidy. However, you can ask for a new assessment if the value of your assets reduces. If you already get a subsidy, it stops if the value of your assets rises above the limits.

A Residential Care Loan Subsidy is available if you do not wish to sell or rent your house when moving into care.

Disclaimer: This information is intended as an information source only and is given as a guide only, and advise should be sought. We accept no responsibility for any errors or omissions. Please contact the Residential Care Subsidy Unit or NASC for up to date information and specifics. They are available on 0800 999 727.