kawaski z250c

I grounded it against the motor and hit the starter and yes the motor spins when I do this.

It sounds as though you could have an Issue with either the Pick up coil, which is #59026, or possibly the CDI Box, #21119. But it could be something else like a bad handlebar switch, making poor contact. It is going to be difficult for you to do any tests without either a test light, or better yet a Volt Ohm Meter. So can you either barrow or buy a Meter?
Maybe Post up Where in OZ you're at, there are several members Down Under. Maybe one is close by and might be of some help?

What spark plug brand and description is being used?

For instance, the spark plug used in KZ900 is NGKB8ES, where the brand is NGK, and the description is B8ES.

Would be certain that the correct spark plug is being used, as recommended by the factory.

And would then test for spark when using a brand new correct spark plug.

Am thinking -- but not positive -- that the 1982 Z250 single uses NGK DR8ES, or D8ES.
Which may have been superseded by D8EA.

One of the many pleasant little surprises when doing a Google search.
Click > ngkntk.co.uk/wp-content/uploads/2011/03/Motorcycle-Cat.pdf

Good Fortune!

I just looked at the Cdi, took it of and it sounds like something's rattling and I can hear it pretty loudly if I shake it, is this a problem

trent250c wrote: I just looked at the Cdi, took it of and it sounds like something's rattling and I can hear it pretty loudly if I shake it, is this a problem

That's suspicious, especially since the unit is supposed to be suspended in a rubber fitting to presumably isolate it from vibration.

Good Fortune!

When checking for spark on a removed plug held grounded against the engine, one of the small wires should be furnishing constant battery positive voltage to the ignition coil.

The other small wire connects to ground through the bike's ignition system which repeatedly grounds and ungrounds the coil's primary winding.

It's easy to by-pass the bike's ignition system, and check for plug spark, which indicates the coil is okay.

Just detach the small ground wire from a charged coil -- which is the same thing that the bike's ignition does -- and the plug should spark when the small ground wire is detached.

It's okay to do this over and over again.
Of course, physically doing this by hand isn't nearly as fast as the bike's ignition grounds and ungrounds the coil.

Upon completing the coil test, remember to turn the ignition switch OFF .

Good Fortune!

trent250c wrote: I just looked at the Cdi, took it of and it sounds like something's rattling and I can hear it pretty loudly if I shake it, is this a problem

Shouldn't be anything loose inside of a CDI unit, so it very well could be the problem. But there must be some function there or you would get NO spark whatsoever. Hard to say for sure without testing each part of the system and ruling out each piece.