Today, Liberal backbencher Julia Banks said she could live on $40 a day.

This comes amid a thick debate over welfare payments.

Australians on Newstart Allowance get a maximum of $545 a fortnight or $40 a day.

One of Australia’s leading economists wants to increase doll payments by $50 a week.

Chris Richardson, Senior Partner at Deloitte Access Economics says the amount of money people on welfare receive is unnecessarily cruel.

He tells Ben Fordham he couldn’t live on $40 a day, and it shouldn’t be expected people looking for work can.

“When you’re applying for jobs and they’re across town and you have to spend money to get from A to B, it is a tough thing.”

Listen to the full interview below

Liberal MP Craig Kelly weighs in on the debate, telling Ben he “probably” couldn’t live on $40 a day.

But he says it’s not meant for that reason.

“The dole is not something that is there to live on, it’s a temporary payment to help you until you can get another job.

“If you set the dole too high, it becomes a discouragement for people to go out and work.”

Listen to the full interview with Craig below