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Residential Care and Disability Support Services Act 2018

Schedule 2: Means assessment for long-term residential care

You could also call this:

"How your money and assets are assessed when you need long-term care"

Illustration for Residential Care and Disability Support Services Act 2018

When you need long-term residential care, your assets are assessed. You have an asset threshold, which is the amount of assets you can have before you have to pay for care. There are two thresholds: Threshold A is $291,825 and Threshold B is $159,810.

Your threshold depends on your situation. If you have no spouse or partner, or if they are also getting care, you use Threshold A. If your spouse or partner is not getting care, you use Threshold B, unless you choose to use Threshold A.

You can choose which threshold to use if your spouse or partner is not getting care. If you choose to use Threshold A, the value of your spouse or partner's home and car will be included in your asset assessment. Some assets are exempt, meaning they are not included in your assessment, such as your spouse or partner's home and car, or some payments you receive from the government.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS41722.

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Schedule 1: Transitional, savings, and related provisions for residential care and disability support services, or

"Rules to help change from old laws to the new Residential Care and Disability Support Services Act 2018"

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Schedule 3: Means assessment for home-based disability support services, or

"Working out what you can afford to pay for home-based disability support"

2Means assessment for long-term residential care Empowered by ss 34, 37, 74(1)(e)–(i), 75

1Applicable asset thresholds

1Applicable asset thresholds

  1. This clause specifies the applicable asset thresholds that apply annually for—

  2. the year 1 July 2018 to 30 June 2019; and
    1. all later years beginning on 1 July.

      1. Threshold A is $291,825 and applies to every qualifying person or special case person (P)—

      2. who has no spouse or partner; or
        1. whose spouse or partner is also a qualifying person or special case person; or
          1. whose spouse or partner is not a qualifying person or special case person but who has elected, under clause 2, to have Threshold A apply to P rather than Threshold B.

            1. Threshold B is $159,810 and applies to every qualifying person or special case person (P)—

            2. whose spouse or partner is not a qualifying person or special case person; and
              1. who has not elected, under clause 2, to have Threshold A apply to R.

                Notes
                • Schedule 2 clause 1(2): amended, on , by regulation 4(1) of the Residential Care and Disability Support Services (Annual Adjustment of Applicable Asset Thresholds and Income-from-assets Exemption) Regulations 2025 (2025/122).
                • Schedule 2 clause 1(3): amended, on , by regulation 4(2) of the Residential Care and Disability Support Services (Annual Adjustment of Applicable Asset Thresholds and Income-from-assets Exemption) Regulations 2025 (2025/122).

                2Certain residents may elect which threshold to apply

                1. A qualifying person or special case person (P) whose spouse or partner is not a qualifying person or special case person may elect to have Threshold A in clause 1 apply to P instead of having Threshold B in clause 1 apply.

                3Explanation of election

                1. The effect of making an election under clause 2 is that the person’s applicable asset threshold will increase, but the value of any interest in the residential dwelling and the car of the person's spouse or partner will be included in the calculation of the person's assets (see paragraphs (a) and (b) of the definition of exempt assets in Part 2).

                2Means assessment as to assets

                4Definitions

                1. For the purpose of an assets assessment conducted under section 34,—

                  assets, in relation to the person being means assessed, means the assets of the person and the person’s spouse or partner (if any) that are capable of being realised by the person or the person’s spouse or partner, and includes—

                  1. the value of any right, under a contract or arrangement with any person, to be paid or repaid money on termination of a licence to occupy part of any property, building, or premises, adjusted to take into account any conditions or restrictions on that right:
                    1. the value of assets that have been gifted by the person, the person's spouse or partner, or both during the prescribed gifting period immediately before the date of means assessment, but does not include any allowable gifts, or the value of any allowable gifts, prescribed by regulations made under section 74

                      exempt assets, in relation to the person being means assessed, means—

                      1. any interest in a residential dwelling that is the principal residence of the person's spouse or partner or a dependent child of the person; but this exemption does not apply to a person who has made an election under clause 2:
                        1. any interest in 1 car or similar vehicle that is for the personal use of the person's spouse or partner, but this exemption does not apply to a person who has made an election under clause 2:
                          1. the value of any ex gratia payment by the Government of New Zealand or the Government of any other country to the person because the person or the person’s spouse or partner was a prisoner of war or civilian internee of Japan during the Second World War:
                            1. the value of any pre-paid funeral of the person or of the person's spouse or partner, up to a value of $10,000 (or any other amount that may be prescribed by regulations made under section 74) for each:
                              1. a lump sum paid to the person under Schedule 1 of the Accident Compensation Act 2001, or a lump sum payment of an independence allowance under Part 13 of the Accident Insurance Act 1998 or Part 4 of Schedule 1 of that Act, but this exemption applies only in the first 12 months after the payment is made:
                                1. any contributions to, or any member's interest in, any KiwiSaver scheme that is registered under subpart 2 of Part 4 of the Financial Markets Conduct Act 2013, except the following:
                                  1. money withdrawn from a scheme of that kind:
                                    1. money that the member is entitled to withdraw from the scheme under clause 4(3) of the KiwiSaver scheme rules under the KiwiSaver Act 2006:
                                      1. money that the member has applied to withdraw and that would be a permitted withdrawal under those rules:
                                      2. any assets, or amount of assets, of the person or the person’s spouse or partner declared by regulations made under section 74 to be exempt assets.

                                      3Means assessment relating to income

                                      5Definitions

                                      1. For the purpose of a person's income assessment under section 37,—

                                        income means the following, and in every case is the income after deduction of income tax:but does not include the following:

                                        1. the income of the person or the person’s spouse or partner that is within the meaning of the term income as defined in Schedules 2 and 3 of the Social Security Act 2018:
                                          1. any benefit received by the person:
                                            1. 50% of any amount received by the person or by the person’s spouse or partner by way of a pension that—
                                              1. is from any superannuation scheme, whether or not that scheme is constituted in New Zealand; and
                                                1. is not New Zealand superannuation; and
                                                  1. is not an overseas pension (as defined in section 187 of the Social Security Act 2018):
                                                  2. 50% of any amount received by the person or by the person’s spouse or partner under an annuity paid in respect of a policy of life insurance (whether or not issued in New Zealand):
                                                    1. the income of the person's spouse or partner that is earned by the personal effort of the spouse or partner:
                                                      1. any clothing allowance payable to the person under regulations made under section 74:
                                                        1. the income-from-assets exemption of the person:
                                                          1. any amount paid by a funder in respect of the cost of contracted care services provided to the person or the person’s spouse or partner:
                                                            1. any amount or type of income, or amount of a certain type of income, specified in regulations made under section 74

                                                              income-from-assets exemption means the amount of income derived from assets each year not exceeding the following (or any other amount or amounts as may be prescribed by regulations made under section 74):

                                                              1. $1,267, if the person is single; or
                                                                1. $2,534, if the person's spouse or partner is a resident assessed as requiring care; or
                                                                  1. $3,801 if the person's spouse or partner is not a resident assessed as requiring care.

                                                                  Notes
                                                                  • Schedule 2 clause 5 income-from-assets exemption paragraph (a): amended, on , by regulation 4(3)(a) of the Residential Care and Disability Support Services (Annual Adjustment of Applicable Asset Thresholds and Income-from-assets Exemption) Regulations 2025 (2025/122).
                                                                  • Schedule 2 clause 5 income-from-assets exemption paragraph (b): amended, on , by regulation 4(3)(b) of the Residential Care and Disability Support Services (Annual Adjustment of Applicable Asset Thresholds and Income-from-assets Exemption) Regulations 2025 (2025/122).
                                                                  • Schedule 2 clause 5 income-from-assets exemption paragraph (c): amended, on , by regulation 4(3)(c) of the Residential Care and Disability Support Services (Annual Adjustment of Applicable Asset Thresholds and Income-from-assets Exemption) Regulations 2025 (2025/122).

                                                                  6Annual income

                                                                  1. For the purposes of a means assessment as to income, a person's annual income is the person’s estimated income (as defined in clause 5) for the period of 52 weeks commencing on the date of means assessment.

                                                                  7Weekly income

                                                                  1. A person's weekly income is the person's annual income divided by 52.

                                                                  8Weekly contribution

                                                                  1. The weekly contribution payable by a person whose income is assessed is the person's weekly income less the personal allowance (as defined in section 24(2)).