Found this bit from 2008
Looks like the government keep the points but then they can use these on family members
http://www.maps.finance.gov.au/circulars_archived/smos/2008/docs/Ministerial_Circular_2008-13.pdf
Also found this bit more resent where they are looking at the points being kept.
http://www.ausbt.com.au/australian-government-looks-to-frequent-flyer-points-to-slash-travel-costs
