Re the licensing issue; as was mentioned above, CASA recognises that those who have completed an operational conversion are eligible for a CPL. They still have to apply for it and pay the fee, but are exempt from exams and courses of training.
ATPLs are a different story, and unless some extraordinary exemption has been organised in this case, RAAFies who want one have to sit all the exams like anyone else. Most of the hours requirements are taken care of in the course of a couple of normal flying tours.
Having said that, there are plenty of people who do their ATPL subjects at their own expense whilst in the RAAF in order to keep their options open.
Instrument and instructor ratings still require a flight test, but those with appropriate military flying experience are exempt the CAO-prescribed courses of training (still have to pass the IREX for an IRT though).
That's a bit of a revenue-raising thing from CASA that I don't really agree with - fair enough to have to pass the IREX and prove knowledge of CAOs etc, but it was a bit weird to have been legal to fly in cloud and at night for 20 years in a previous life and then have to jump through the hoops again for an initial issue instrument rating.