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Health of Older People in New Zealand

Questions and Answers on Residential Care and Income and Asset Testing


The Social Security (Long-term Residential Care) Amendment Act 2004 made a number of significant changes to income and asset testing for older people requiring long-term residential care indefinitely.

Questions and answers on residential care and the changes to income and asset testing under the Act are provided in the categories below:
  • Residential Care
  • Changes to Income and Asset Testing
  • Maximum Contribution
  • Needs Assessment
  • Financial Means Assessment
    • Asset test (financial means assessment as to assets)
    • Income test (financial means assessment as to income)
  • Gifting and extraordinary gifting
  • Deprivation of property and income
  • Social Security (Long-term Residential Care) Regulations 2005
  • Family trusts and house value assessment
  • Residential Care Loan
  • Further information

Disclaimer

The information presented in these Questions and Answers is a summary version of the requirements relating to long-term residential care as set out in Part 4 of the Social Security Act 1964. This information does not constitute legal advice to the public and is not a substitute for legal advice particularly when personal issues must be addressed.

For further information readers should consult the Social Security Act 1964, (the Act), the regulations made under the Act, (the Regulations), the Aged Residential Care Contract (the contract, available in standard form on the Ministry of Health website) the residential care loan agreement (the loan agreement) and talk to the District Health Board or relevant agencies. In the event of any conflict or inconsistency between the information in this document and the Act, the Regulations, the contract, or the loan agreement, the Act, the Regulations, the contract or the loan agreement prevail.

Further information

For questions or more information about income and asset testing e-mail olderpeople@moh.govt.nz or write to Health of Older People, Population Health Directorate, Ministry of Health, P.O Box 5013 WELLINGTON.

For more information about local needs assessment and service co-ordination agencies, contact your local DHB.

For information about applying for a residential care subsidy or residential care loan, contact Work and Income’s Residential Subsidy Unit, freephone 0800 999 727.

A copy of the legislation (Social Security (Long term Residential Care) Amendment Act 2006) can be purchased from Bennetts bookshops and is also available online - Social Security (Long-term Residential Care) Amendment Act 2006.



Page last updated: 20 July 2007



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