Good point about taxation!
I've just done some quick sums based on my full-time income last financial year and the current tax rates in Australia.
On average, I pay $0.25 in income tax for every dollar I make (taking the stepped thresholds and Medicare Levy into account). That means, for every dollar I have in my hand to spend, I have to earn $1.34. Then, when I spend my dollar, 10% of that dollar goes to the taxman (due to our Goods and Services Tax). So that sort of means I pay $1.34 for something worth $0.90. I get the item, the seller gets $0.90, and the government gets $0.44. Or, in other words, I have to make $1.47 in order to buy something worth $1.00. Nearly half as much again as what the item is actually worth.
Now, there's not a whole lot I can do about the Income Tax Thresholds. But for every item that I produce for myself that's worth a dollar, I save $1.10, because I don't pay for the item, and I don't pay tax on the item.
Also, according to my sums, if I earn $20,000 less per year, I'll actually be less than $13,000 out of pocket, because I save just over $7,000 in tax. This also means I'll only be paying an average of $0.19 in tax for every dollar that I earn.
So let's pretend that I decide to work less, and I earn $20,000 less per year. If I'm able to reduce my annual expenses by $13,000 I will be in the same financial position as I was when I worked full-time. I wonder if that's easily achievable?