I don't know about Australia, but it was a bit less stringent in the UK.
I took a year out between school and university and had a 6 month period where I wasn't doing much (I was only 19).
My parents told me to collect unemployment benefit because they had spent years paying in taxes so we should get stuff back.
I went along and then Blair brought in that rule that you had to prove you were looking for work.
I was a bit more honest after a while and said "Look mate I am going to university in Sept, I don't want to be looking for a job now because it's bloody July now"
His response? "Yeah fair enough, well put down you are looking and will attend 3 interviews between now and sept. That way they'll still pay you"
Boom. I didn't get much from memory though - it wasn't exactly lottery winning stuff!
So in my experience, it's a complete rort anyway!!