The Social Security (Long-term Residential Care) Amendment Act 2004 amends the Social Security Act 1964 (“the Act”) to make a number of significant changes to income and asset testing for older people requiring long-term residential care indefinitely.
The changes come into effect on 1 July 2005.
The new policy applies to people already in residential care in District Health Board (“DHB”) contracted facilities and to all people who enter such care from 1 July 2005.
Under new section 152 of the Act, the Director-General of Health is required to notify the maximum contribution that applies in each region.
The maximum contribution is the maximum weekly amount (inclusive of G.S.T.) that a resident assessed as requiring care may be required to pay for contracted care services provided to them in the region in which their rest home or continuing care hospital is located.
Contracted care services are services provided to needs assessed people in a rest home or continuing care hospital that has a contract with a DHB.
The services are those provided and paid for in accordance with the agreement between the DHB and the residential care provider.
The agreement specifies that its coverage is up to a maximum number of subsidised residents for the facility.
The agreement covers:
? residents who are eligible for the residential care subsidy (as determined through a financial means assessment under section 141 of the Act); and
? means assessed persons (under section 140) who have funding paid on their behalf (the top up subsidy) to cover the difference between the maximum contribution and the cost of contracted care services provided to them.
The maximum contribution is the same for all residents regardless of the type of contracted care services they receive – rest home, dementia, continuing or specialist hospital care.
The maximum contribution set by this New Zealand Gazette notice applies from 1 July 2005.
It is equivalent to the most recent, nationally agreed rest home contract price applying to residential care facilities in each Territorial Local Authority region.
The maximum contribution is set at $636.00 per week (G.S.T. inclusive) for any region where the rest home contract price is lower than $636.00.
The maximum contribution will change only when a new maximum contribution is gazetted.
New maximum contributions will reflect changes to rest home contract prices that usually result from the annual review of the residential care contract between DHBs and providers.
Region: Territorial Local Authority District Health Board Maximum Contribution Weekly (G.S.T. inclusive)
Auckland City Auckland $674.28
Kawerau District Bay of Plenty $636.00
Opotiki District Bay of Plenty $636.00
Tauranga District Bay of Plenty $642.10
Western Bay of Plenty District Bay of Plenty $636.00
Whakatane District Bay of Plenty $636.00
Ashburton District Canterbury $636.00
Banks Peninsula District Canterbury $636.00
Christchurch City Canterbury $636.00
Hurunui District Canterbury $636.00
Kaikoura District Canterbury $636.00
Selwyn District Canterbury $636.00
Waimakariri District Canterbury $636.00
Kapiti Coast District Capital & Coast $636.00
Porirua City Capital & Coast $636.00
Wellington City Capital & Coast $655.52
Franklin District Counties Manukau $636.00
Manukau City Counties Manukau $666.10
Papakura District Counties Manukau $651.13
Central Hawke’s Bay District Hawkes Bay $636.00
Hastings District Hawkes Bay $636.00
Napier City Hawkes Bay $636.00
Wairoa Hawkes Bay $636.00
Lower Hutt City Hutt Valley $643.33
Upper Hutt City Hutt Valley $636.00
Rotorua District Lakes $636.00
Taupo District Lakes $636.00
Horowhenua District MidCentral $636.00
Kapiti Coast District MidCentral $636.00
Manawatu District MidCentral $636.00
Palmerston North City MidCentral $636.00
Tararua District MidCentral $636.00
Marlborough District Nelson Marlborough $636.00
Nelson City Nelson Marlborough $646.26
Tasman District Nelson Marlborough $636.00
Far North District Northland $636.00
Kaipara District Northland $636.00
Whangarei District Northland $636.00
Central Otago District Otago $636.00
Clutha District Otago $636.00
Dunedin City Otago $636.00
Queenstown-Lakes District Otago $643.56
Waitaki District Otago $636.00
Mackenzie South Canterbury $636.00
Timaru District South Canterbury $636.00
Waimate District South Canterbury $636.00
Gore District Southland $636.00
Invercargill City Southland $636.00
Queenstown-Lakes District Southland $643.56
Southland District Southland $636.00
Gisborne District Tairawhiti $636.00
New Plymouth District Taranaki $636.00
South Taranaki District Taranaki $636.00
Stratford District Taranaki $636.00
Hamilton City Waikato $638.08
Hauraki District Waikato $636.00
Matamata-Piako District Waikato $636.00
Otorohanga District Waikato $636.00
Ruapehu District (part in Waikato) Waikato $636.00
South Waikato District Waikato $636.00
Thames-Coromandel District Waikato $636.00
Waikato District Waikato $636.00
Waipa District Waikato $636.00
Waitomo District Waikato $636.00
Carterton District Wairarapa $636.00
Masterton District Wairarapa $636.00
South Wairarapa District Wairarapa $636.00
North Shore City Waitemata $671.58
Rodney District Waitemata $651.13
Waitakere City Waitemata $655.22
Buller District West Coast $636.00
Grey District West Coast $636.00
Westland District West Coast $636.00
Rangitikei District Whanganui $636.00
Ruapehu District (part in Waikato) Whanganui $636.00
Wanganui District Whanganui $636.00
Copies of the maximum contribution amounts and other information about the income and asset testing changes applying from 1 July 2005 can be found on the Ministry of Health web site at
Needs assessment and service co-ordination agencies, the Residential Subsidy Unit of the Ministry of Social Development and residential care providers will also know the maximum contributions applying in each region.
Dated at Wellington this 20th day of June 2005.
KAREN O. POUTASI (DR), Director-General of Health.