Understanding the Residential Care Subsidy in New Zealand

The Residential Care Subsidy is a New Zealand government subsidy that helps pay for long-term care in a rest home or hospital. To be eligible, you must undergo a needs assessment, and your assets must be below certain thresholds, which vary depending on whether you include your family home and car in the calculation. The subsidy is paid directly to the care facility and does not need to be repaid. How it works:

1. Needs Assessment:

-You must first have a needs assessment to determine if you qualify for residential care.

2. Asset Thresholds:

Your assets are assessed to see if you meet the eligibility criteria. There are two options:

-Assets must be $159,810 or less, if you do not include the value of your family home and car.

–Assets must be $291,825 or less, if you do include the value of your family home and car.

3. Payment:

If you are eligible, the subsidy is paid directly to the rest home or hospital facility.

Key things to remember:

-This subsidy is for long-term care.

-You must undergo a needs assessment before applying.

-There are specific asset limits you need to meet to qualify.

-The subsidy is a payment to the facility, not to you.

4. How do I apply for a subsidy?

If the Needs Assessment Service Coordination (NASC) team decides it is best for you to move into a Care Centre, they will provide you with the paperwork to apply for a WINZ Financial Means Assessment, which will determine if you are eligible for subsidised care. You can also contact WINZ directly on 0800 999 727 to get a copy of the Residential Care Subsidy application form.

5. When does my subsidy application need to be completed?

It is important that you submit the subsidy paperwork to WINZ within 90 days of Health New Zealand – Te Whatu Ora having completed your needs assessment, or within 90 days of securing a room in a Care Centre.

Even if you can’t fully complete the WINZ Residential Care Subsidy application form straight away, it is best to submit it to WINZ as soon as you can and the WINZ team will contact you about any missing details.

6. What happens if I move into care before I am approved for the subsidy?

It often takes several weeks before subsidy approval comes through and during this time you may have already moved into a Care Centre. It is best to speak with the Care Centre Manager or administrator about your personal circumstances to figure out how best to manage payments. If your subsidy is approved, we will refund you any subsidised amounts you have paid privately towards your care fees.

You can find more information by visiting the Work & Income website: Residential Care Subsidy – Work and Income