What aged care actually costs in NZ
Rest home fees, the Residential Care Subsidy, and the home-based alternatives most families don't realise are available.
Rest homes are expensive, and not the only option. Government-funded home support has no asset test, and a Needs Assessment can unlock home help, personal care, and equipment at no cost. Many families discover their parent qualifies for far more support than they expected.
For some families a rest home is the right call. For others, home support does more than they expect. The point is to compare honestly.
Residential care costs (before subsidy)
| Care type | Cost per week |
|---|---|
| Rest home (basic residential care) | $1,513–$1,634 |
| Hospital-level care (higher needs) | $1,500–$2,500 |
| Dementia / secure care | $1,500–$2,200 |
| Premium / private rooms | $1,800–$3,000+ |
That's $79,000–$130,000+ per year before any subsidy.
Residential Care Subsidy: asset thresholds
The government subsidises rest home costs for people who can't afford to pay. The asset test (from 1 July 2026):
These thresholds are updated every 1 July. The figures here apply until 30 June 2027, and new figures take effect on 1 July 2027. Check Work and Income for the current amount.
| Situation | Asset threshold |
|---|---|
| Single person | $300,811 |
| Couple, one in care (excl. home & car) | $164,731 |
| Couple, one in care (incl. home & car) | $300,811 |
| Couple, both in care | $300,811 combined |
Once assets are below the threshold, the government pays most of the cost. The resident contributes from their income (NZ Super, etc.), keeping a personal allowance of $58.34 a week.
The family home is usually exempt
Your parent's home is exempt from the asset test if a spouse, partner, or dependent family member still lives there. This is one of the most commonly misunderstood parts of the subsidy.
Home-based care costs
| Option | Cost |
|---|---|
| Government-funded home support (via Needs Assessment) | Free or subsidised |
| Private home care worker | $30–$50/hour |
| Live-in carer | $800–$1,500/week |
| Medical alarm (from a medical alarm provider) | $13–$15/week |
| Meals on Wheels | ~$8–$10 per meal (subsidised) |
The comparison: 20 hours/week of private home care costs $600–$1,000/week. A rest home costs $1,513–$1,634/week. Your parent stays in their own home, in their own community, with their own routines — and it can cost less.
How to access government-funded home support
- Ask your parent's GP for a referral to a Needs Assessment (or self-refer to your local NASC agency)
- A trained assessor visits the home (free) and determines what support is needed
- Support is allocated — home help, personal care, meals, equipment, and respite care
- There is no asset test for home-based support (unlike rest home subsidies)
See the full guide to government support for more detail.
Sources
Figures are approximate and vary by region and provider. Residential Care Subsidy thresholds from Work and Income. Maximum contributions from Health NZ.
The information on this page is general in nature and does not constitute legal, financial, or medical advice. For advice specific to your situation, consult a qualified professional.
Dollar figures and entitlements change periodically. We link to authoritative sources where possible. Last reviewed: July 2026.