Thanks for all your responses.
I have found some information though depending on what you read and where the information comes from.
I believe that the rebate is now $1600 for home owners and $1000 for rented properties (though again I have also read $1600 if the tenant pays for the insulation) to claim the rebate $1600, it comes off the bill of professionally installed insulation. I cannot make heads or tails of what happens if you choose to install yourself.

Shellsbells - Yeah I have heard of that stuff, I think there are other products like the Rockwool stuff that are safer to use but I think that stuff would be pretty messy like the stauff you had. MIL had stuff put in the section of the house she renovated but cannot remember what it was called

Yael - because you are melb based I am sure there are heaps of companies around you. Check the Pink Batts website or do a search for Insulation generally for around your area.
I think you can DIY but the rebate is not as much but I do not know how to claim it.