This topic has been done many times, by many people in many countries.
In the end its a vicious circle that is hard to end.
Crime, drugs, mental health, welfare, and self worth are all problems within the welfare system.
A simple, but effective start would be to reduce the cash transactions and introduce "food stamps", the "Australia card" or any other name you choose to give benefit tokens.
But make them only usable at welfare approved outlets for essential items.
Foods such as bread, milk, rice, meat, vegies, fruit. Then essentials like toilet paper, hygiene products, soaps, clothes, shoes etc.
No cash for lollies, smokes, chocolates, DVDs, drugs, going to the movies etc.
Then dish out pamphlets at these outlets explaining our tax free threshold, where they can actually earn up to x amount without paying tax or losing these benefits.
Then the cycle starts to break.
They take ownership of their income and work to provide "extras" in life that they now see as an entitlement.
Foxtel, cigarettes, drugs and movies are a benefit enjoyed from working, not an entitlement.
Slowly but surely these people would realise they can generate an income by working and the more they work, the more they get.
Then when they hit a certain income the benefits would slowly reduce or stop, dependant on the income.
They are then contributing as well as taking, but at least there is some balance.
There is also GST on there expenses and as their income rises, they can start paying tax.
Yes I know its not perfect, and it would be hard to get used to, but if most people are given half a chance or an understanding and helping footing in life, they would be willing to make a go of it.
And of course there will always be the minority bludgers who just choose to be lazy and have no dignity, but that's part of life. Good with the bad etc etc.
If they had their options presented to them and then told their benefits would half on an annual basis, and they see friends and family making an honest go and getting ahead, the tide might turn.
Now before you blast me or think my idea's just crap, consider this...........
Our current system is definitely not working and perpetuating the ongoing generational welfare. At least my idea is a change and having a go.
Give people something to be proud of and to work for. Let them take ownership of their roles in society and see if makes a change.
Kicking my soapbox now, cos it will never change.
Brian