Sure have. I was on the dole between jobs, and my brother was just on it for a year while he rode a bike around Tasmania, then volunteered the circus in Perth :)
How many decades ago was that? Because I can guarantee you, as someone who spent 8 years on Centrelink payments (for study, not unemployment, which is even worse) that it is most definitely not no-strings-attached.
Have you ever actually dealt with Centrelink?