She says “I could”, but you watch the video, Jenny Macklin’s answer here is very odd. She ducks the question once, has it put again, and is asked “Could you live on the dole”. She says “I could”, without any elaboration then goes straight back to spin. Her office then tries to delete it from the transcript.
It’s such a spectacular screwup, I think she must have imagined she was saying something different. But, whether or not that’s right, she, and the government, deserve all the pain they get for this piece of nastiness.