I'll answer you here, altho I really don't think I"ll be much help.
Maybe it's a language thing, but I don't know what you mean by "permanent job." Here in the States, as I see it, there is no such thing.... Do you mean a full-time job with benefits?
<<but they have generously offered me a permanent job doing what i have been doing as a side activity for the past ten years haha.>. Does "side activity" mean cutting your hours to part-time -- or does it mean freelance (no benefits, etc.)? Does Australia have universal health benefits?
Yes, I would negotiate for retraining. I'd get my resume updated and ready, too. And I'd do a bit of internet research. If you don't already know, find out what the market pay rate for someone in your position does -- both on an employee and a freelance basis. Also take a look at the "big picture" and write down your "crossover skills" -- broader capabilities that you possess that would be advantageous to your employer no matter what other job they may offer.
All I can think of.... most of my adult life I've worked either freelance or perm. part-time because of my kids.
Jean