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Hi,
Just a little update on this topic as it is still hot regarding the government rebate. From November the 1st the rebate was reduced to $1200. There are also some additional regulations(like getting a second quote) making it difficult to get a new roof insulation. The best is to stick to a experienced insulation company that knows all the rules and guides you through the process. Have a look at this FAQ Page to inform on the government rebate: http://www.carbonfootie.com.au/faq.html
Regarding the best roof insulation we recommend Glass wool batts. They have a high R-Rating(determines the insulation grade) and are not inflammable (like most blow in cellulose based materials). If you want to know more about insulation have a look here http://www.carbonfootie.com.au/insulation