Yeah - there's plenty of chatter on a half-dozen forums about Flight Centre and refunds... full information is here:
Coronavirus Travel & Business Update
There is no suggestion that FC is not refunding, however, in cases where you seek a refund, even if the operating airline cancels, FC will take out their $300 cancellation fee. If you voluntarily choose to cancel (ie the airline is still operating their flights), then you may be entitled to a credit, voucher, or a refund in line with the terms and conditions of your original fare or the current airline policy.
In any event, if yuo choose the 'refund' option, FC will take out their hefty $300 fee, per person.
I'm not exactly sure if FC taking $300 for a fee if the airline cancels is legal. Time will tell. There's an awful lot of very unhappy folks and I think there will be legal action at some stage, or a review by one of the regulatory authorities.