Qantas - domestic Australia only and **** hard to use on main routes unless you are flying full Y and an elite member. Upgrades can be purchased from the QF club on Y and M fares. Ansett Australia is probably the same although they did allow upgrades to be "purchased" from partners - but unsure about this since they joined star.
Air NZ
- domestic - only as freebee coupons for elites
- international - points in kms (eg. 48000kms LAX/SYD) confirmed at checkin (unless elite then 48/72 hours confirmation) but valid any fare (inc ultra discounted). They give you a paper "receipt" to show (good for "narky" Ansett checkin staff) but in reality the whole thing is done automatically. They physically cancel your economy ticket and rebook you in business. For long legs (LHR/LAX/SYD) there is usually no problem getting an upgrade but on 737's and 767's on shorter legs it can be tricky.
The main difficulty is getting points for NZ's programme as you cannot convert from Hilton etc and they are not overburdened

with partners.
Mark