Health of Older People in New Zealand

Questions and Answers on the Maximum Contribution

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What does the term “maximum contribution” mean?

Under the Social Security Act 1964, the term 'maximum contribution' is defined as the maximum weekly amount (GST inclusive) that any resident assessed as requiring care may be required to pay for contracted residential care services provided in that region.

The maximum contribution sets the amount that people assessed as requiring long-term residential care and residing in DHB contracted facilities have to pay per week for the basic package of care services (contracted care services), regardless of what type of care (rest home, dementia or hospital) they receive.

People can choose to pay extra fees for services that are additional to those covered by the Age Related Residential Care Contract (contracted care services).

For further information on this, refer to While the person is in care, what individual services/items do they have to pay for that are not covered by their subsidy?

Information is also available in the following brochure - Looking at long-term residential care in a rest home or hospital: What you need to know.

What do I need to know about the maximum contribution?

The maximum contribution is set by the Director-General of Health through a notice in the New Zealand Gazette under the Social Security Act 1964 and varies between Territorial Local Authority (TLA) regions.

Increases to the maximum contribution reflect the increased contract price for rest home care nationally agreed between District Health Boards and residential care providers for each financial year. All residents are notified of the effect of the change in the maximum contribution by 1 July each year.

Information on the maximum contribution for each region (Territorial Local Authority regions in each District Health Board) is also available from Needs Assessment Service Co-ordination agencies, residential care providers, Work and Income, the Residential Subsidy Unit of the Ministry of Social Development (free phone 0800 999 727) or through our Information Line on 0800 737 777.

For general queries about the maximum contribution e-mail the Health of Older People Team at olderpeople@moh.govt.nz , or write to the Health of Older People Team, Sector Policy Directorate, Ministry of Health, P.O Box 5013, WELLINGTON.

Page last reviewed: 20 July 2007