Actually, due to the value of the Australian Dollar, people who earn points in that currency have been getting an extraordinarily good deal for many years.
This is the real story behind the slightly higher levels required to spend Qantas miles as compared to American-based carriers. It is also the basis for the erstwhile 2:1 Starwood conversion ratio, not just the former use of kilometres instead of miles, as had been often mentioned.
I was looking into arbitraging my frequent flyer miles by earning them in Australian dollars.
Right now Diners Club (U.S.) does not even offer a conversion of points to Qantas miles, though of course Diners Club (Austr.) does. And they are still at 2:1!
If all the other Australian banks follow the lead of National Australia Bank, then it looks like this gravy train is over, and I'm too late to climb aboard.
But you haven't been "robbed." The bank just woke up to what a great deal they have been giving you and decided to bring things in line with the rest of the world.
Have any other banks in OZ followed suite?