I often flirt with a rather extreme view, and while I'm not prepared to advocate it, it does make logical sense.
Basically, just do away with the whole government thing. Make taxes high enough for defence spending, law enforcement and so on but do away with the social welfare, health spending, education spending, basically anything that's not essential. Cut taxes so that the government just has enough money to operate.
Now, let people give their money how they choose. If they want to donate to the disabled, so be it. If they want to donate to the poor so that the poor can afford a university degree, so be it.
Now, some may protest that we can't rely on people donating to the poor (and I agree), that the poor are going to suffer, not be able to afford health, education and a reasonable standard of living, or even in extreme cases living essentials. In other words, not enough people are willing to give up some of their money to the poor. But hang on, aren't we supposed to have representative government? Isn't Australia run on democratic ideals? So if people wouldn't be willing to give to the poor if the government wasn't forcefully taking their money, why isn't the government reflecting the views of the majority of Australians?