‘I could live on $40 a day’: Liberal MP slams Shorten’s dole criticism

Liberal backbencher Julia Banks has hit back at claims no politician could survive on $40 a day and insisted she could easily get by on the measly income — and now she’s being challenged to do just that. 

Banks’ comments come after Opposition leader Bill Shorten called for an urgent review into the government’s welfare payments, most notably Newstart and Youth Allowance. Shorten said no politician would be able to live on the $40 a day allocated to people on Newstart and called for the government to focus on those living “at the very bottom of our society”. 

Just hours later though, Banks hit back and told ABC Radio’s Rafael Epstein she “could live on $40 a day knowing that the government is supporting me with Newstart to look for employment”. 

After one listener called in to brand her “out of touch”, she shot back and argued, “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”.

Now, in a result she may not have expected, Hobart Youth Allowance recipient Sherri Prendergast, 22, has challenged Banks to try to get by on the wage – saying she herself struggles on the welfare payment every week. She has survived on $400 a fortnight in Youth Allowance for six years.

Read more: Shorten calls for urgent welfare review: ‘I couldn’t live on $40 a day’

“If you make more money than what people on Newstart are getting, I’d challenge people to do it, see what it feels like,” she told the show. “If you’ve never had to worry about whether or not you can get something as simple as toilet paper, then you’re not going to know what it’s like.”

Shorten has thrown his weight behind a plea from leading economist and senior partner at Deloitte Access Economics, Chris Richardson, who called for Newstart and Youth allowance payments to be increased.

Currently, the maximum fortnightly Newstart payment is $545.80 for a single person with no children – which equates to $38.98 a day. Meanwhile, Youth Allowance payments for single 16 to 24-year-old students with no kids, who are living away from home to work or study, are capped at $31.84 a day.

According to The Australian, when asked if he could survive on a similar amount of $40 a day, Shorten said: “No, I couldn’t”.

Read more: Harsh rules for single parents on welfare ‘at odds’ with MPs: mums group

Shorten now wants the government to focus more on the people “at the very bottom of our society” and recommends a root and branch review of the entire government payments system – something he says Labor is pushing for.

“We’d contemplate reviewing it because we’ve got to be honest, don’t we? Who on earth among the government or anyone in parliament could live on the Newstart Allowance?” He asked. “That’s why we’ve said we want to review it, and we think the government would be very sensible to join us in this approach.”

According to The Australian, around a million Australians receive either Newstart or Youth Allowance. Pensioners meanwhile, aren’t faring much better with their own fortnightly allowance. The maximum basic rate for a single is $826.20, which equates to $59 a day, while couples can receive a maximum amount of $1,245.60 combined – that’s $44 a day each.

Do you or someone you know live on welfare payments? Do you struggle with them?