The new stimulus package originally had a rebate for Insulation, think it was $1000, but you can't claim for the insulation rebate AND the solar hot water rebate, it is one or the other... that is going on none of those details being changed from what they were when the package was originally announced.

I can't comment on wall insulation, but we did roof insulation a few years ago and got a product called Silverbatts. They are like cardboard, no fibreglass particles floating around or special clothing needed to be worn while they were put in. From memory, they could be installed in walls as well, but I think that might have to be at the building stage?

I think we got ours from a company called, Insulation Superstore. They are QLD based, but seemed pretty honest when DH called about the products they stocked. We were tossing up between two different types and they told us which one would be better for our area.
Forgot to mention, one the reasons we went with the silverbatts was because of DD's asthma, we didn't want anything floating around if possible, plus it was easy to install, pull it apart, throw some things in the middle of the sheets and up in the roof they go. You cut them to size with scissors! They were a bit more expensive than pinkbatts though.