I mentioned in this post about downlights fire warning.
Today I found some information related to this from this web site on greenhouse.gov.au.
"Electrical wiring must be appropriately sized or it may overheat when covered by insulation. Have it inspected by a licensed electrician to ensure it can be safely covered by insulation."
"Allow clearance around appliances and fittings. Do not install insulation within 90mm of hot flues or exhaust fans, or within 25mm of recessed light fittings. (Retain a clearance of 90mm for low voltage downlights). Restrain loose-fill insulation with non-combustible barriers."