Prime Minister Scott Morrison has met the finalists of this year’s Australia of the Year awards at a morning tea held in Canberra.

Among the favourites are Dr Richard Harris and Craig Challum who were both involved in the intricate rescue of 12 young boys stuck in a Thai cave.

But one person is criticising the distribution of the Order of Australia awards, saying they’re being handed out to the wrong people.

Lateral Economics CEO Nicholas Gruen tells John Stanley the awards don’t seem to be awarded based on merit.

“Awards like these, you don’t give them to people who already have the world, the judges, the heads of department.

“If they’ve done some incredible thing, perhaps.”

Mr Gruen says most of the recipients aren’t “seriously excellent”.

“They’re people who get well regarded, they don’t offend too many people and we give them the highest honours.”

Click PLAY below to hear the full interview