Paying for residential care

You’re responsible for paying for your own residential care but you may qualify for government help. Read about the financial support that’s available and how to find out about the costs.

What residential care costs

Residential care providers charge different amounts.

Contact your care provider to find out what they’ll charge if you move into their rest home or hospital.

The services offered by residential care providers can also vary. They must tell you about the services they offer and be clear about which ones you must pay extra for.

Services offered in residential care

Residential care questions and answers — Health New Zealand

Check your Admission Agreement

What you pay each week is written in the Admission Agreement you sign with your rest home or hospital.

Your Admission Agreement and care plan

The maximum amount you’ll pay

The maximum amount that a rest home or hospital can charge for contracted care services, is called the ‘maximum contribution’. This is set by Health NZ — Te Whatu Ora.

How much you’ll pay:

  • depends on where you live
  • does not depend on the level of care you need
  • is adjusted every year on .

Maximum contribution from — Ministry of Health

Maximum contribution from — New Zealand Gazette

Some services are outside of the contract and not covered by the maximum contribution. For example, a premium room and hairdressing services. You’ll usually need to pay extra for these. Any extra charges must be specified in the Admission Agreement.

The Seniorline website provides a list of:

  • contracted care services to which the maximum contribution applies
  • services that are outside of the contract and will cost you extra.

Contracted care services — Seniorline

If you cannot afford to pay

You’re responsible for paying for your own residential care. If you get NZ Super, Veteran’s Pension or any other benefit, most of this will go towards your care.

If you cannot afford all or some of the cost of your residential care you can apply for government help. You must continue to pay for your care while you apply.

Residential Care Subsidy

This government subsidy helps with the cost of your long-term care. It’s paid directly to your rest home or hospital and you do not need to pay this money back.

Before you apply you will have to get a needs assessment.

Get a needs assessment

Qualifying for the Residential Care Subsidy and how much you’ll get depends on your situation, for example:

  • your age
  • if you have dependent children
  • the care you need and how much it costs
  • any money or assets you and your partner (if you have one) have
  • how much you and your partner (if you have one) earn.

For more information:

Residential Care Loan

If you cannot get the Residential Care Subsidy, you may be able to get a Residential Care Loan.

This interest-free loan is paid directly to your rest home or hospital to help pay for your care if you own a property. This means you will not need to sell your property to pay for your care.

The loan does not need to be repaid until you pass away or sell the property, whichever happens first.

Work and Income will consider your Residential Care loan application only if you cannot get a Residential Care Subsidy.

To see how this loan works, how much you might get and how to apply, visit the Work and Income and Seniorline websites.

Residential Care Loan — Work and Income

Residential Care Subsidy / Loan — Seniorline

Top-Up subsidy for higher levels of care

If you need a higher level than rest home care, the cost will be greater than the maximum contribution.

This cost difference is covered by the Top-Up subsidy, which applies to all needs-assessed clients requiring a high level of care, including those paying privately.

Your needs assessor will apply for you and the payment is made directly to your care provider. You do not need to do anything for this.

Private payers — Seniorline

Get a needs assessment

NZ Super or Veteran’s pension

If you go into residential care and your partner stays living at home, your partner can get the single, living alone pension.

Help for partners staying at home

Contact Seniorline

Seniorline provides information for older people about residential care, community services and how to get help at home.

Who to contact for more help

If you need more help or have questions about the information or services on this page, contact one of the following agencies.

Utility links and page information

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