Care homes offer a wide range of accommodation options, at varying price levels. Something that costs extra in one home (like an ensuite) may be included at no additional cost in another, so it's good to ask lots of questions and make comparisons.
Years ago, most rest homes in New Zealand were pretty standard wherever you went - hence the term 'standard room'. Nowadays, this is not the case. New Zealand has changed; if you have more money, you likely have more options (and potentially more control over your ageing journey). While paying more may get you a better room or a nice view, it does not buy you better care.
That's because care services are governed by a contract known as the ARRC Agreement, which determines the standard of care that must be provided by certified and contracted homes.
Read on to learn about some of the common accommodation options available in New Zealand rest homes.
Standard Rooms
Standard rooms include all core services outlined in the ARRC agreement, including:
- Personal care and assistance
- Nutritious meals and snacks
- Accommodation (including the use of furniture, fittings, fixtures, bedding and utensils)
- A clean, warm, safe, well-maintained living environment
- Cleaning and Laundry
- An accessible outdoor area
- Communal aids and equipment for mobility or personal care
In some areas of the country standard rooms may be shared, which can be a good way to build friendships and reduce loneliness. These rooms are ideal for those wishing to avoid additional fees. Not all standard rooms look for feel the same - what is included in a standard room in one place, such as an ensuite, may attract additional fees in another - so make sure you visit them before making a decision.
Standard rooms are in short supply due to a shortfall in government funding. The 10km rule can help locate standard beds when required.
Premium Accommodation
Premium accommodation includes the same services outlined above for a standard room, plus extras, such as:
- Private ensuite
- View or garden access
- Tea/coffee facilities
- Access to recreational equipment
These features are over and above the ARRC Agreement requirements and incur additional daily costs of $5 to over $100 per day, on top of the maximum contribution.
Providers are required to publish their premium accommodation charges. Find these at www.eldernet.co.nz/vacancies or directly on provider websites.
If you ever find you can no longer pay the premium accommodation charges, there is a process you can follow:
- You can review your premium tenancy 18 months after admission, then every 6 months thereafter.
- The provider then has 6 months to move you to a standard room, giving three days notice, or stop charging premium fees.
- Notice requirements may be waived in cases of financial hardship.
Care Suites
Are care service is paid for much like a unit in a retirement village - you make an upfront 'purchase' payment. What this payment is called and how it is treated will vary. Some, such as an Occupational Rights Agreement, will likely have a percentage deducted on exit (known as a Deferred Management Fee). Others, such as a Refundable Accommodation Deposit, are fully refundable on exit.
Because you've already paid for the accommodation components, the provider cannot charge you (or Health NZ, if you're receiving a subsidy) again. If you are a non-subsidised resident, your care provider must pay you back 18% of the maximum price for your care home services. You will still need to pay maintenance and other property-related fees, such as rates and insurance, depending on the ORA.
If you already had an agreement with the provider before July 1, 2013, and it was in line with the rules back then, the provider doesn’t have to pay you back the 18% mentioned above.
Dual-Use ("Swing") Beds
These rooms can accommodate different levels of care over time. The main exception is dementia care, which may require a move to a more secure environment. Premium accommodation charges may or may not apply, depending on the room.
Non-contracted Facilities
Some newer providers are offering fully private-pay options that fall outside the ARRC contract model. Here are the key points of difference between the previously listed accommodation types:
- They are not contracted with Health NZ for care provided.
- The facility must still meet staffing standards, undergo audits and be certified to provide care that meets the Health & Disability Services (Safety) Act 2001.
- It is unlikely an assessment or referral will be required. An in-house assessment should still be conducted by the facility to create a care plan.
- The facility will determine the fees, which will not be subject to the maximum contribution or Health NZ 'top up' subsidy.
If your financial situation changes later, you can apply for an interRAI assessment, but you would need to move to a contracted facility to receive funded care.
Additional Services
You may choose to buy additional services unrelated to care and not covered by the ARRC Agreement. These are generally lifestyle-related rather than care-related, and might include things like television services or streaming subscriptions.
Your admission contract must clearly list which optional services you agree to, and you can add or remove these at any time.
Trial Periods
You may try out a home before making a commitment and while you will have to pay for this yourself, you'll probably find it is money well spent. A month usually gives you enough time to assess the home - how it runs, what staff are like, and whether it feels right for you. It may not feel like home yet, but it gives you valuable insight and may make you feel more comfortable about leaving or going elsewhere if it's not right for you.
You are purchasing a service, and have the right to expect reasonable needs to be met. If something feels wrong or doesn't sit well with you, don't feel you have to settle. Once you do decide a home is right, simply let management know and they'll help you move forward with the next step.
Updated: 24 Nov 2025