How much does aged care cost and who pays for aged care?
How much does care cost?
Care fees are set by the District Health Board (DHB) rather than the individual facilities, so all care homes within a region will charge the same amount for a standard room. Rest Home care is give or take around $1100 per week - depending on the DHB you are under. Hospital and Dementia care does cost more than Rest Home care, however the Ministry of Health ‘tops up’ these amounts, so the maximum fee you will pay for a standard room at any level of care is this Rest Home fee of approximately $1100.
WINZ revises the care fees in July each year. Find out the current care fee set by your DHB.
Who pays for care?
Everyone pays for their own care however, some people pay the full amount privately, and for others the costs are subsidised by the DHB. A financial means assessment done by Work & Income (WINZ) determines if you are eligible for a subsidy. The means assessment considers all your incomes such as pensions, dividends and interest, and all of your assets such as your house, vehicles, savings, investments, trusts etc. If the total value of your assets is below the threshold amount, you may be eligible to receive a Residential Care Subsidy. You will contribute a portion of your incomes, including your superannuation towards the cost of your care, and the subsidy will cover the rest of the Daily Care Fee. Residents with total assets and/or incomes above the threshold will need to pay privately for their care.
If you’re moving into care but your partner still lives at home, you can choose between two asset thresholds to suit your personal situation.
WINZ revises the asset thresholds in July each year. You can find the current asset threshold amounts on the WINZ website.
What happens to my Superannuation when I move into a Rest Home?
If you are eligible for a Residential Care Subsidy, most of your Superannuation payment will be used to cover the cost of your care. You will receive a weekly allowance to spend as you wish, as well as a yearly clothing allowance. You can find out what these allowance amounts are on the WINZ website.
If you have to fund your own care privately, you will continue to receive your full Superannuation payment.
The infographic below shows the contributions required for both private paying or subsidised residents at Rest Home, Hospital and Dementia level care.
Looking for more information?
You might be interested in these pages:
What’s covered by the Daily Care Fee?
Room options and their costs
Residential Care Subsidy
Or contact the manager of your local Oceania Rest Home
The Ministry of Health website and WINZ website also have helpful information.