Residential Care Subsidy

Book an appointment with a Needs Assessment Service Coordination (NASC) agency funded by Health New Zealand - Te Whatu Ora. You can do this by visiting the NASCA website to find your local NASC.

They will:

• check you meet Health New Zealand - Te Whatu Ora's criteria
• determine what level of care you need
• complete a Needs Assessment Certificate.

If you're under 65 and have a partner, this is all you need to do, as we won't look at your assets or income. A Needs Assessment Certificate will be sent to Health New Zealand - Te Whatu Ora, who will organise payment for your care.

Complete a financial means assessment form

If we need to assess your assets or income, you will be given a 'Residential Care Subsidy application for Financial Means Assessment' form at your appointment.

You need to:

• fill out the form
• gather your supporting documents (these are listed on the form)
• return the form and your supporting documents to us as soon as you can. Call us to talk about the best way to do this.
  • if you're 65 or over, you'll need to return them within 90 days of the date you want the subsidy to start.

We'll check to make sure your assets are below the required limits. This is the first part of what we call a 'Financial means assessment'.

What's included as an asset

Assets may include but are not limited to:

• cash or savings
• bonus bonds
• investments or shares
• life insurance policies with a surrender or cash asset value
• loans made to other people (including family trusts)
• boats, caravans and campervans
• investment properties
• an apartment or property you own through a:
  • license to occupy (LTO)
  • occupational right agreement
• refundable accommodation deposits or bonds.

Family home and personal vehicle

Your family home and personal vehicle are included as assets if either:

• you don't have a partner
• 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 $284,636 asset threshold.

What's not included as an asset

Assets that aren't included are:

• pre-paid funeral expenses for you and your partner of up to $10,000 each, if they're held in a recognised funeral plan
• personal belongings such as clothing and jewellery
• household furniture and effects.

Assets are above the limit

If you're 65 or over and your assets are above the threshold because you own your own home, you may be able to get a Residential Care Loan. This will help with the cost of your care.

If you or your partner have gifted assets, there's a certain portion that won't be included as an asset. The amount depends if you've gifted the assets:

• in the last 5 years (from when you apply for the subsidy), or
• longer than 5 years ago (from when you apply for the subsidy).

If you sold an asset in the last five years we will check that it was sold for fair value. We might ask you some more questions if you sold an asset for less than fair value or if you sold it in exchange for a debt. 

Gifted assets in the last 5 years

We won't count up to $8,000 of assets you've gifted each year in the last 5 years (from when you apply for the subsidy). This is a total of $40,000 of any assets you and your partner (even if they've died) have gifted in the last 5 years.

If your partner applies at the same time, this amount will double to $80,000 (but we won't count $40,000 each if you apply at different times).

This amount includes any assets you've gifted to someone in recognition of care. If your partner applies, it will not double if you've gifted assets to someone in recognition of care.

Gifting assets in recognition of care

We may not count assets you've gifted to someone who's provided you with a high level of care if you've:

• received care for at least 12 continuous months in the last 5 years
• gifted these assets to the carer in the last 12 months (from when you apply for the subsidy)
• lived in the same home as the person providing the care
• not received any funding for home-based disability support from the Ministry of Health, eg, Home Support, meals on wheels
• been able to stay in your home because you received care which meant you didn't need to get this payment.

Also:

• the person providing the care cannot be your partner or dependent child
• the type of care needs to be necessary to help you around the home, eg, help with bathing or toileting.

Your gifts in recognition of care cannot be more than $40,000, when combined with other allowable gifting in the last 5 years (from when you apply for the subsidy). 

Gifted assets longer than 5 years ago

We won't count up to $27,000 a year of any assets you've gifted longer than 5 years ago (from when you apply for the subsidy). $27,000 is the total amount between you and your partner (even if they've died).

Sold assets in exchange for a debt

We won't count assets that you have sold in your means assessment. This is because you no longer own the asset.

However, if you sold your assets in exchange for a debt then the outstanding debt that is owed to you will be considered an asset. 

If your assets are below the required asset limits, the next thing we'll do is complete an income assessment. This is the last part of the financial means assessment.

Income limits

We'll check to make sure your income is below the required limits. How we work this out is different for each type of income.

What's included as income

• NZ Super, 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.

We'll 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.

What's not included as income

• Any money your partner has earned through work.
• Income from assets when the income is under:
  • $1,236 a year for single people
  • $2,472 a year for a couple when both have been assessed as needing care
  • $3,707 a year for a couple where one partner has been assessed as needing care.
• A War Disablement Pension from New Zealand or any other Commonwealth country.

You may qualify for the Residential Care Subsidy earlier than when you applied, which means it may be paid from an earlier date.

50-64 years old

If you're 50-64 and single with no dependent children, it can be paid from either:

• the date you were assessed as needing care, or
• the date you entered care.

It will be paid from whichever date is later.

65 or older

If you're 65 or older, it can be paid from up to 90 days before we got your application. It depends on when you qualified from.

For example, if we received your application on 1 May but you qualified for the subsidy earlier than this, it can be paid from when you qualified (but only as far back as 1 February).

We'll let these people know the outcome of your financial means assessment:

• you
• Health New Zealand - Te Whatu Ora, and
• your rest home or hospital.

How the subsidy is paid

The Residential Care Subsidy is paid directly to the rest home or hospital by Health New Zealand - Te Whatu Ora.

How much the subsidy is

1. We'll work out how much you should contribute to your care, based on your income assessment (generally we calculate this using your annual income at the time you applied).
2. Health New Zealand - Te Whatu Ora will look at how much your care costs.
3. The amount of the subsidy is the difference between these 2 amounts.

For example:

1. We've worked out that you should contribute $300 a week to your care.
2. Health New Zealand - Te Whatu Ora has confirmed that your care costs $900 a week.
3. Your subsidy will be $600 a week.

What's included in cost of care

Some things are not included in the cost of your care, for example a Premium Room Charge because you pay for it privately.

If you don't know what's included in the cost of your care, you should talk with your rest home or hospital.

Getting a benefit, NZ Super or Veterans Pension

If you get NZ Super, Veteran's Pension or any other benefit, most of this will go towards your care.

• You'll keep a personal allowance of $55.35 a week.
• You'll also receive a clothing allowance of $347.17 a year.

You must continue to pay for your care until your application for Residential Care Subsidy has been approved.

If you have a partner living at home

Your partner may:

• be able to get the Special Disability Allowance of $49.02 a week to help with extra costs
• get an increase in their payment, if they get a benefit
• qualify for a single rate of payment, if they get a NZ Super or Veteran's Pension
• qualify for other payments after you go into care, if they aren't getting any payments from us.