> We've seen over the last few months what a smaller government looks like. Moving to a "user pays for everything" model means less take home wages with a flow on effect of less money for startups.

I don't know much about Australian government, but how is a "user pays for everything" model different from taxation? In your state, doesn't a user still pay for a service through taxation, whether an income tax (less take home wages), sales tax (less money for startups) or some other tax?