I hear you Ty, though I don't think it will actually go down exactly like that.
Just to clarify a few things.
14,500 of those jobs were flagged to go under labor, Abbott has added 2000 more.
More than 2000 of those jobs will attributed to natural attrition (so the shit that happens in every business, people move on, people retire etc) those positions will just not be replaced, So you can't count those as being people out of work.
Often when governments cut jobs they are cutting the equivalent of said number of positions which doesn't necessarily mean 16500 people out of a job. Some of said positions can be attributed to clamp downs in working overtime hours, this reduction in working hours could account for a good few jobs too, smaller to no wage increases for these employees can also account for some of these positions - this is how some of the position losses have been accounted for in some previous cuts.
So While that doesn't account for the entire amount of the positions to go, it does take a decent chunk out of the people who will suddenly be out of work.
These losses will also occur gradually over 4 years, they have stated that each department will be gone over individually to identify redundant postions, so say there are in total going to have to be 10,000 people who will physically be out of work after taking into account above, these cuts will be over 4 years and occur from departments all over the country, these people will gradually filter back into the workforce, 5000 a year isn't a drastic amount to be absorbed into the Australian job market.
While it isn't great for these people, I really don't think the flow on effects will be as drastic as what people have made out.
This isn't the first time in the past few decades that this many jobs have been cut from government departments, it also will not be the last.