The DPB (Domestic Purposes Benefit) is, in short, a weekly payment which assists solo parents that have one or more dependent children.
What is the criteria for recieving the DPB?
Well you will need to meet the below guidelines.
- A dependent child under 18 years of age
- Not be in a relationship with the parent of that child
- Have no partner ( or have lost the support of their partner )
- Be over the age of 18 in most cases
- Be either a permanent resident or NZ citizen
- Have been living in NZ for at least 2 years since becoming a resident or NZ citizen
How much do parents receive on the DPB?
The basic rate (after tax) for someone on DPB is $288.47 per week. With additional allowances and depending on location it is possible for a parent to get up to $580 a week!
What about Child Support?
Any child support that the other parent pays goes straight to the government to offset the DPB payments.
What about if the parent starts work?
Well it is possible to earn other income without the DPB payments being affected, however there are thresholds. Once the earnings become greater than 100 dollars a week, the DPB payments start to be reduced.
Is it a fair scheme?
In some cases a parent will take advantage of a situation in order to to receive this benefit unfairly. For example, if the solo parent has the type of job where they can earn cash without paying tax. Not only will they get the same benefit then, as someone who truly needs it, this benefit will be coming out of hardworking tax payers pockets.
On the other end of the spectrum are those that have to pay tax, pay child support and pay extra above child support to ensure that their kids have what they need – yet perhaps they don’t get a cent from anyone else.