If you are single the limit is $291,825.
If you are a couple and you both need care the limit is $291,825.
If you are a couple, and one of you needs care there are two threshold options:
- Combined assets of $159,810, not including the value of your home and car, or;
- Combined assets of $291,825, which does include the value of the home and car.
The following examples help illustrate the difference between these two options:
- Couple A may choose the higher threshold of $291,825. They do not own their own home and have total assets of $185,000 so are under the Asset Threshold.
- Couple B may choose the lower threshold of $159,810. They own their own home (it’s worth noting that retirement village units and serviced apartments will be treated as a home for RCS purposes) worth $700,000 and a car worth $18,000. The car is exempt from the assessment. The house is exempt only when it’s the main place where the partner who is not in care or a dependent child lives.
The above applies as at July 2025. The amount is adjusted annually and, rarely, as required.
If your assets are above the Asset Threshold and you have been assessed as requiring residential care, you will have to pay privately for this. As your assets decrease, you may become eligible for an RCS. Make sure you, or someone you trust, monitors when this is approaching so you can apply. If your assets are found to be equal to or below the Asset Threshold and you meet other criteria, you may be eligible for an RCS. You will still need to have an income assessment, which will include NZ Super.
NOTE: This is a guide only. Individual circumstances vary widely, and details may change so get current information from Work and Income.
Other related Knowledge Lab articles include:
What is the residential care subsidy?
Financial means assessment - income & asset testing
How much does living in a residential care home cost?
For more information about residential care
For: an overview of residential care
For: details of all residential care facilities in the country
For: residential care VACANCIES that are updated daily and shown on a map
Updated: 18 Jul 2025