Just to inform everyone. Called the OZ central reservations centre in Korea, +8215888000, rather than the local sales offices. The agent was able to arrange an award ticket with EY directly, so it is possible to have an EY award with OZ miles. ^
EDIT: Just looked at the e-ticket and realised that EY do not charge fuel surcharges, SYD-AUH-FRA in F for 110 000 miles and €57 taxes!
I tried twice to call, once the Korea number, and once the US, and both times the agents claimed they cannot see Etihad First availability even though AA could see it, Expertflyer shows it, and Etihad's website shows Guest First availability. Is there something I should be telling the agent, or should I ask for a supervisor?