Each year, on 1 July, there is a review of the level of assets that a person or couple can have in their personal name(s) and still qualify for a government Rest Home Care Subsidy (also known as Residential Care).
As at 1 July 2026, the new amounts for this year are:
- Threshold A – $300,811 (if you are a single person, or both you and your partner are in care)
- Threshold B – $164,731 (if one of you are in care, and you do not want to include your family home and car in the assets being assessed)
This is the amount that your personal assets need to be below before you will qualify for a government subsidy towards your care.
The gifting limit for the five-year period before a Rest Home Care Subsidy application is made is now $8,500 per annum, per couple. This means that the threshold for allowable gifts during that gifting period (which is based on 5 years of the gifting amount) increases from $40,000 to $42,500. Gifting earlier than five years from application remains at $27,000 per couple.
With the recent availability of care suites where there is rest home or dementia level care in an apartment that is owned under an Occupation Right Agreement (ORA), it’s important to consider what the surrender value of the ORA is. On an application for a care subsidy the surrender value of the ORA is usually considered an asset, so if that is over the current limit of $300,811 that may stop a single person qualifying for a subsidy. Some Villages have other options, such as a delay in care fees, but this needs to be negotiated before entering an agreement.
When someone close to you enters Rest Home Care, it can be a stressful time for the entire family. The subsidy application process can also feel overwhelming, as the form is extensive and requires detailed information. This is especially the case where a Trust is involved or where someone has a life interest in an estate.
We have experience supporting clients with the completion of subsidy applications and helping family members understand the information required. We also offer a Trust Management service, which includes reviewing any gifting made to a Trust and considering how this may impact a future subsidy application.
For further information and advice, contact Associate Lawyer, Jo Mechaelis-Wall. Jo specialises in Senior Law and assisting families with estate planning.
The information contained in this outline is of a general nature, should only be used as a guide and does not amount to legal advice. It should not be used or relied upon as a substitute for detailed advice or as a basis for formulating decisions. Special considerations apply to individual fact situations. Before acting, clients should consult their Parry Field Lawyer.
Published July 2026.
