‘I could live on $40’

Liberal MP labelled out-of-touch over boast about dole life

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 earns a parliamentary base salary of more than $200,000, denied she was out-oftouch.

“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 just $17.60 a person.

A rise in the allowance has been backed by the Business Councils of Australia, prominent economist Chris Richardson and the Greens.

“I’ve been talking about this for years – you cannot live on $39 a day,” chief executive Jennifer Westacott told ABC radio yesterday. She also wants to see more literacy and numeracy programs.

“A lot of these people are shockingly disadvantaged,” she said. 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 to and “I can attest that it is near-impossible”.

Asked if the existing rate was “cruel”, Jobs Minister Michaelia Cash said the Coalition’s priority was to get people off welfare.