If your current flying school says that you'll find it a bit harder with the experience you have versus getting a couple of hundred more hours then I would say that they are advising you correctly.
Did they say they won't do your CIR now? Or did they just give you a heads up on the possible cost overun?
The IREX doesn't necessarily reflect the IR flight training.
I don't know if this school still exists but check out the school in Innisfail, QLD. If you do a good job he may be able to get you a start in Cairns or Horn Is or Mt Isa.
I think Ad Astra in Jandakot isn't a bad IR school. Well, they were the ones being recommended to guys in the Kimberley if they didn't have an IR already.