This is an interesting situation.
Being based in NSW , I am neither biased towards either Village or Dreamworld.
From a measure of outside looking in, my take on the situation is that Dreamworld had in place a grant that was approved to build a Koala research centre for a specified sum. This was a government grant and from the looks of it , was approved and planned pre-pandemic. Then along came COVID, the priorities of the park shifted (along with revenue and patronage during this time). DW obviously decided that they needed to alter their plans and saw they had a pool of money for a planned koala research centre. Given that they found that they required help to build a bright, shiny , expensive new coaster , they asked the government if these funds could be diverted towards the new coaster , which will help the park survive in these times and lead the park through the pandemic and give people a reason to return to the park post pandemic. Given that DW is a massive part of the GC tourist landsacpe, the government not unreasonably , saw this request for what it was , a diversion of already approved funds , to help a struggling entertainment entity deliver a new atraction that would aid in their post pandemic recovery , thereby aiding in keeping what is arguably one of the states most important tourist attractions and areas solvent and viable.
The government approved this and it was all above board. From my perspective, it certainly passes the "pub test" .
I think we can all agree that the presentation of the Steel taipan coaster and the success and influence it has had on DW has been very positive. My overall feeling on this situation is that things change and priorities shift. To me this , what DW have done here is not something that I feel is in any way morally corrupt or illegal. I think it shows good business sense and use of available funds to aid in an unprecedented situation in order to help the business survive.