If you want to cut 'welfare', the best place to start is to cut benefits to those who need it least, and probably benefit most.
Eg superannuation rebates/ tax exemptions for those above the minimum wage; cut all children/family/education benefits or tax breaks to those above, say, $60k/year combined income; no funding of high fee private (public) schools; no rebate for private health cover.
That would probably help a lot without much of a dint in the economy.
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