Nationals MP and former deputy prime minister Barnaby Joyce has argued there is a case for raising Newstart for people in country areas, despite Prime Minister Scott Morrison refusing to budge on the issue.

Key points: Nationals MP Barnaby Joyce says the Newstart allowance would be difficult to get by on, especially in regional areas

Nationals MP Barnaby Joyce says the Newstart allowance would be difficult to get by on, especially in regional areas Prime Minister Scott Morrison says getting people into jobs is more important than increasing support payments

Prime Minister Scott Morrison says getting people into jobs is more important than increasing support payments Tracey Phillips, who is on Newstart, collects cans and bottles to help make ends meet

About 723,000 Australians receive the Newstart allowance. If they are single they live on about $40 a day.

The payment has not increased in real terms for 25 years.

Former prime minister John Howard, Labor MPs, business and welfare groups say the payment should be lifted, and on Thursday Mr Joyce added his support for a re-think.

"Certainly $555 or thereabouts a fortnight is difficult, especially in regional areas," Mr Joyce said at the Bush Summit in Dubbo, New South Wales.

"Especially if your rent's $250 a week, well, you're not really going to get by.

"It's just the very nature of being poor. It's more expensive to live; things go wrong, they need to be fixed, cars breakdown because they're old, the heater you buy is the inefficient one."

The Government said two-thirds of people on Newstart found work within 12 months.

The Prime Minister, also at the Bush Summit, said he was focused on tax cuts rather than lifting support payments, which he said were indexed every six months.

"More importantly, it's about getting people into jobs and the latest job figures showed over 20,000 additional full-time jobs. That's good news, that's great news. How good are more jobs?" Mr Morrison said.

But Brendan Rynne, chief economist from accountancy firm KPMG, said increasing Newstart would not only be fair but good policy, given the softness of the Australian economy.

"People who are living on Newstart are on the poverty line," Dr Rynne told 7.30.

"KPMG has worked out that Newstart has to be increased by about $80 a week for it to catch up to effective wage growth since 1994.

"Given the number of people on Newstart that's going to cost the Government about $3 billion a year … the budget can afford it."

Reserve Bank Governor Philip Lowe recently acknowledged lifting Newstart would have economic benefits.

'I've almost given up'

Tracey Phillips is on Newstart and has been collecting bottles and cans to help make ends meet. ( ABC News: Tony Hill )

Adelaide woman Tracey Phillips, 51, said she received about $250 a week on Newstart and was struggling to make ends meet. She urged the Government to lift the rate.

"I just think of that scene from Oliver where the little boy's saying, 'Please sir, may I have some more?' And they get a power trip kick out of putting the boot into the poor people," Ms Phillips said.

She said she saved money on groceries by "dumpster diving" and collecting cans and bottles.

"This is another thing that I do to help save a bit of money. I've probably got around $100 worth [of bottles and cans] here and that's probably going to go towards fixing my car," she said.

Ms Phillips works a few hours a week in hospitality but said the job market was tough and she felt her age was a disadvantage.

"It's not that I'm not trying hard enough. I've almost given up, that's what it is. I've given up," she said.

"I know that I've got the skills, I know I've got the personality, I've got everything they're looking for. And I apply and I don't hear anything back."

'I don't know anybody who wants to be on Newstart'

Liam Ellis is waiting for his Newstart payments to begin. ( ABC News: Tony Hill )

Up until a month ago Liam Ellis, 31, was earning a casual wage working as a security guard in Adelaide. He was let go after his probationary period.

"Honestly, I think I was good at my job. I'm sure there was room for improvement but I wasn't given any feedback," he said.

"I wasn't told that I'd made a mistake and that I needed to fix it, I was just told I'm out.

"I don't know anybody who wants to be on Newstart."

He is back applying for jobs and budgeting carefully, while waiting for his Newstart payments to restart.

"I was told they backpay up to 13 weeks, so there's the scary possibility they might take up to 13 weeks," he said.

"My final pay check, I used the last of it yesterday to pay the rent, so I'd really like to do some grocery shopping and get some fresh fruit and vegetables, but I'm going to be eating plain pasta until that comes through.

"We're not bludgers and leaners. We're trying to get a job and you could be us tomorrow."