Residential Support Subsidy – information for residential service agencies
Information for agencies involved in residential care, publicly-funded through Te Whatu Ora - Health New Zealand.
Please do not use any old factsheets or forms. These are no longer valid.
You can ‘PDF print’ pages from our website.
Who can get it
- drug and alcohol rehabilitation
- an intellectual disability
- a psychiatric disability
- a physical or sensory disability, or
- long term support - chronic health conditions.
Summary of the application process
Step 1: The person is assessed by a Needs Assessment Service Co-ordinator (NASC).
Step 2: If they're eligible, the person enters residential care.
Step 3: The residential service provider notifies Work and Income
Step 4: The residential service provider and resident complete the Residential Support Subsidy application and authorisation form
Step 5: Work and Income process the Residential Support Subsidy application and authorisation form
Step 6: Residential Support Subsidy starts and the person starts to pay a benefit contribution.
Full application process
Step 1: The person is assessed
A contracted Needs Assessment Service Co-ordinator (NASC) service completes a ‘needs assessment’. This assessment is to see if the person is eligible for residential care (see 'Who can get it' section).
Needs Assessment Service Co-ordinator (NASC)external
Step 2: Eligible-person enters residential care
If they're eligible, the needs assessor places them into full-time residential care. This will be with a Health New Zealand-contracted residential service provider.
Step 3: Residential service provider notifies us
The service provider must let Work and Income know within 24 hours of the person entering residential care. They can do this by completing either of the following forms:
The residential service provider submits the form(s) and all supporting documents by:
- emailing MSD_RSS@msd.govt.nz, or
- dropping them off at a Work and Income service centre.
Work and Income service centre
Contacting us after 24 hours
Contacting us after 24 hours can cause a:
- delay in the benefit contribution being set up
- delay in Residential Support Subsidy being paid to the service provider
- debt being established for the person entering care.
Step 4: Filling out the application and authorisation form
Both the person applying and the residential care provider need to fill out and sign the Residential Support Subsidy form.
There are other forms that may be relevant to the person's situation and needs. You can find them in the 'Related forms' section below.
The person applying must:
- understand what it means to sign the form and
- sign it themselves.
If they can’t do this and don’t have an agent, check the instructions next to question 14 on page 5 of the form.
The residential service provider submits the form(s) and all supporting documents by:
- emailing MSD_RSS@msd.govt.nz, or
- dropping them off at a Work and Income service centre.
The person doesn’t get a main benefit or NZ Super
In most cases, the person will be getting a main benefit or NZ Super before entering residential care.
If this is not the case, we encourage them to check if they can get a main benefit or NZ Super. This is because they may have no other income while in residential care.
Use Check what you might get to see what supports could be available.
The person can either apply online, or fill in a paper application form.
Paper application forms can be submitted at the same time as the Residential Support Subsidy application and authorisation form. This lets us set them up with their correct entitlement at the same time as the subsidy.
If the person can't get a main benefit or NZ Super
This is not very common. In this situation, we inform Health New Zealand that the person has applied for Residential Support Subsidy but they're not getting a benefit or NZ Super. The completed Residential Support Subsidy application and authorisation form is required to do this.
Work and Income won't be involved after this. Step 5 and 6 won’t take place.
Health New Zealand will contact the service provider about the payment of care costs.
Step 5: Work and Income process the Residential Support Subsidy authorisation
Work and Income process the completed authorisation form, and notify:
- Te Whatu Ora - Health New Zealand
- the person applying, and
- the residential service provider.
Step 6: Residential Support Subsidy starts
Health New Zealand start to pay Residential Support Subsidy to the residential service provider.
Contributions
While in residential care, the person must contribute toward their residential care costs. They do this through the Work and Income payments they have authorised (step 4).
Residential Support Subsidy – information for residential service agencies
The person's contributions continue until the date they leave residential care. We'll talk with them to discuss payments. They may choose to:
- redirect the contribution to the service provider through Work and Income, or
- pay this to the service provider directly themselves.
Who pays towards care
Health New Zealand pays most of the care costs to the residential service provider. This is known as the Residential Support Subsidy.
Residential Support Subsidy payments are made to the service provider directly by Health New Zealand.
Benefit contribution
Once the person becomes a resident, they have an obligation to contribute towards these costs. If they're getting a benefit or NZ Super, part of this goes towards the contribution. This is called a 'benefit contribution'.
How much contribution depends on the person's benefit type, primary disability and personal allowance.
Personal allowance
The personal allowance is what a person keeps from their benefit or NZ Super (after their benefit contribution). The rate is set by Health New Zealand.
Residential Support Subsidy – information for residential service agencies
There are two set personal allowance rates, based on the person’s primary disability.
These rates are reviewed on 1 April every year.
The personal allowance rates from 1 April 2025
| Category | Net weekly rate (after tax at 'M') | Gross weekly rate for NZ Super or Veteran's Pension | Gross weekly rate for other benefits |
|---|---|---|---|
| People with Psychiatric or Intellectual Disabilities, including drug/alcohol rehabilitation | $85.02 | $94.89 | $94.99 |
| People with Physical or Sensory Disabilities or Long Term Support Chronic Health Conditions | $138.14 | $154.31 | $154.35 |
Obligations
While the subsidy is being paid, the person and residential service provider have obligations. This includes letting us know about any changes in circumstances.
Residential service providers
Residential service providers must notify us within 24 hours about the person's:
- entry to care
- change of address (internal transfer within the facility or temporary absence)
- admission to public hospital
- return to residential care from public hospital
- discharge from residential care (to community, another service provider or public hospital)
- death.
Let us know by completing the following form:
Email the completed form to MSD_RSS@msd.govt.nz.
Person in residential care
The person in residential care must let us know about any changes in their circumstances. An exception is if they aren't a Work and Income client.
This includes changes in income, relationships, or address.
Let us know by calling us calling us.
Changes to disability type
We need to know if the person in residential care's primary disability type changes. An example might be if it changes from an intellectual disability to a long-term chronic health condition.
In this situation, the residential service provider and person need to complete a new Residential Support Subsidy application and authorisation form.
Other support available
Community Costs Payment
Help for a person in short-term residential care to pay for their essential ongoing costs in the community.
Disability Allowance
Help with ongoing disability related costs. This support may help with costs that aren't covered by the service providers contract with Health New Zealand.
Needs Assessment and Service Coordination (NASC) services
NASC services are organisations contracted by Health New Zealand.
They help people with disabilities, their carers, and whānau get support and services.
Whaikaha (Ministry of Disabled People)external
Other types of support
Visit Check what you might get to see what other types of financial support may be available.
The role of an agent
The person in residential care may need help from an agent. An agent is a person or organisation who deals with us on the person's behalf. For more information on agents see our page:
Having someone act on your behalf
The Residential Support Subsidy application and authorisation form asks if a client already has an agent.
The form also asks whether the person wants to appoint their residential service provider to be their agent. This would only be temporary, for the time they're in care.
If someone helps the person to complete the form, there’s a section about this too.
If you have questions
Please contact the NASC agency who completed a needs assessment if you have questions relating to a person’s needs assessment.
How to contact us about Residential Support Subsidy:
Email: MSD_RSS@msd.govt.nz
Phone: 0800 999 779
Monday/Tuesday/Thursday/Friday 8am to 5pm
Wednesday 9:30am to 5pm
Calling from overseas: +64 9 845 77 43
Other helpful contact details
New Zealand Needs Assessment Services Co-ordination Association:
Disability Support Services:
www.disabilitysupport.govt.nz/external
Te Whatu Ora – Health New Zealand:
www.tewhatuora.govt.nzexternal
Manatū Hauora – Ministry of Health:
http://www.health.govt.nzexternal
Health and Disability Commissioner:
www.hdc.org.nz or 0800 11 22 33external
Seniorline: