Introduction

Residential Care Subsidy is a subsidy paid through Health New Zealand – Te Whatu Ora.

The subsidy assists with the cost of contracted care for a client in long-term residential care in a hospital or rest home indefinitely.

The amount of subsidy is the difference between the cost of contracted care and the amount a client is required to contribute for that care.

Eligibility for most people is determined through an asset and income test known as the Financial Means Assessment.

A Financial Means Assessment is required under the Residential Care and Disability Support Service Act 2018 when clients are applying for Residential Care Subsidy. Clients applying for this assistance need to use the resources available to them before seeking assistance under this Act.

Senior Services - residential care assess a client's financial eligibility to Residential Care Subsidy and the income contribution they are required to make.

The Ministry of Health is responsible for the payment of Residential Care Subsidy to the hospital or rest home where the client resides.

Note people aged between 50 and 64 with a partner and/or a dependent child are fully funded by the Ministry of Health and are not means assessed.