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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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The Castle

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Q: What Australian movie includes the phrase tell him he's dreaming?
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