The Labour government is keeping its promise with the phasing out of National's much-hated asset testing regime beginning today, says Associate Health Minister Pete Hodgson.

The changes will save millions of dollars for older New Zealanders in residential care – but Mr Hodgson's warning them not to expect similar generosity from the National Party.

In a speech to a Grey Power AGM in April National leader Don Brash said the government had been talking about eliminating asset testing completely for years "but it's all been cheap talk and would be hugely expensive to implement."

"This is just so typical from the Nats – it's all too hard so we won't do it," says Mr Hodgson.
"This government made a commitment to progressively remove asset testing and that's exactly what we're going to do. "

Asset test thresholds change today, with the government injecting $93 million (ex GST) over the next 12 months to save thousands of older New Zealanders in residential care from the financial burden of paying base fees.

"The progressive removal of asset testing was a promise and we're delivering on that promise," says Mr Hodgson.

"This policy recognises the right of older New Zealanders to benefit from the assets they have built up for themselves and their families through their working lives."

From today single people and couples with both partners in care will be able to keep up to $150,000 in assets, including both property and savings, before their assets are used to contribute to the cost of their care – up from $15,000 and $30,000 respectively.

Couples where one partner is in care will retain their current exemptions of a house and car and their cash asset exemption will rise from $45,000 to $55,000. Alternatively, they can choose to be tested against the $150,000 threshold for total assets.

The exemption thresholds for all groups will then increase by $10,000 per year from 1 July, 2006, allowing older New Zealanders to keep more and more of their assets.

National has made no similar commitment.

Contact:Pete Kerr, media assistant, 04 471 9918, 021 349 918
peter.kerr@parliament.govt.nz