One case recently involved an elderly man who was moved into the family home to look after the grandchildren while the parents worked, but the grandchildren became abusive toward him.
Mrs MacKenzie said any funding was "more than welcomed".
"It will strengthen the ability to deal with this terrible blight."
Mrs Goodhew said raising awareness of elder abuse and neglect was one of her top priorities as the Minister for Senior Citizens.
The Government has already funded 24 similar services around New Zealand, costing $1.6 million per year.
Local MP Todd McClay also welcomed the investment.
"Caring for our elderly people is important and there are currently no funded services in Rotorua and Kawerau that focus on issues such as elder abuse and neglect."
He said Grey Power, Age Concern, the RSA and others all played an important role in the community, in particular on these two serious issues.
"I have huge respect for the good work they do and I am pleased that this latest funding will provide a further tool for them to be able to support Rotorua's seniors."
The Ministry of Social Development will be contacting potential providers shortly.
Further information on EANP services can be found on the Ministry of Social Development's website or by calling the Family Violence Information Line on 0800 456 450.