MP says $40 a day OK to live on

A FEDERAL Liberal backbencher thinks she could live on $40 a day.

Julia Banks has been labelled out-of-touch by radio talkback callers after saying she could live on the Newstart allowance, amid calls it should be increased by $50 a week.

“I could live on 40 bucks a day knowing that the Government is supporting me with Newstart to look for employment,” Ms Banks told ABC radio.

The Victorian MP, who won the seat of Chisholm in 2016 from Labor and earns a parliamentary base salary of more than $200,000, denied she was out-of-touch.

“I speak to constituents every day and all I can say is the dignity of having a job and finding work is what our policy is about,” Ms Banks said.

Newstart pays a single person with no children $545.80 a fortnight, or $39 a day. For a couple, it equates to $35.20 a day or $17.60 a person. A rise in the allowance has been backed by the Business Council of Australia, economist Chris Richardson and the Greens.

“I’ve been talking about this for years — you cannot live on $39 a day,” BCA chief executive Jennifer Westacott said.

“A lot of these people are shockingly disadvantaged.”

Labor has committed to a “root and branch” review of welfare payments if elected.

Opposition Leader Bill Shorten has questioned how anyone in parliament could live on the dole.

Greens senator Rachel Siewert has tried and “I can attest that it is near-impossible”.

“When you factor in cost of accommodation, utility charges, transport, phone, unexpected costs such as car breakdowns there is little left for food. Food becomes a discretionary item,” Senator Siewert said.

Jobs Minister Michaelia Cash said the priority was to get people off welfare.