Step One: Stop increasing spending. You don't have the money. You're borrowing money from future generations to pay for current consumption.
Step Two: Determine what the role of government is. The core functions. Be open about it, and be open about what government shouldn't be doing.
Step Three: End funding for anything inconsistent with what you determine in step two.
Step Four: Look again at the role of government, look at what incentives and impacts your involvement in any portfolio creates. End funding for anything negative.
Step Five: Change local government legislation to require it to do the same.
Step Six: Remember that when some areas of the economy are taxed less than others (e.g. property) that means that you should cut taxes in other areas. The lower, the flatter the taxes, the less distortions.
Step Seven: When you run out of ideas to cut spending, look at Hansard from 1999 to 2008. You voted against just about every spending increase Labour introduced, why don't you show some damned backbone and convictions, and reverse the lot. By simply doing that you'd eliminate the budget deficit and have enough surplus to cut taxes.
Step Eight: When you run out of backbone, remember this....
TAXES ARE NOT THE GOVERNMENT'S MONEY, THEY ARE LEGALISED THEFT
Say this every single night 100 times
It might just help you realise who your employers.