The Australian movie which included the phrase "Tell him he's dreamin'!" was the 1997 film "The Castle".
The Castle was about one family's fight against a huge airport corporation that wanted to expand its land and knock down their house, their "castle". It featured unique Australian comedy and slang, and for this reason was not well received overseas, as most foreigners did not understand the humour.
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Waterboy.
The movie is "Walkabout" (1971). It was based loosely on the novel "Walkabout" by James Vance Marshall.
Yes. "Babe" is an 1995 Australian film, based in New South Wales, and tells the story of a pig who has dreams of becoming a sheep dog.
Australian Shepherd
It was not in a movie, it was in the television show Seinfeld.