Constructive?
if I were a Chief pilot and discovered an applicant was on the dole for 12 months or so and then used govt funds to cover their renewal costs, the application would be fast tracked to the bin.
There is work out there, even stacking shelves, McDonald what ever, if you want a few $$$ make your way to Brisbane I have a few jobs for you.
There are some pilots out there who are in the a position where it's the only way to feed themselves. That being; self funded bare CPL licence working "casually", 2 paid hours a week at the place you trained because they're the only ones who'll let you fly their planes with 150 hours. To get those 2 flight hours per week you'd be expected to hang around for 40+ hours and "help out". Then throw in study for ATPLs etc. When you don't have wealthy parents supporting you, sometimes the dole is the only option.
Scotton,
The whole idea of the government funding in this regard is as you said; to get people their qualifications so they become employable and get off the dole. Having said that, I can say with certainty they would not be funding an initial CIR and highly unlikely a renewal. They have the budget for things such as an RSA or forklift licence. <-- that would probably encompass text books for ATPL theory notes and exams.