Hello OP,
I may as well throw my two cents in. I am a big fan of using credit card to get miles. And there's a many people who disagree with me. And that's where agree to disagree.
There's a huge advantage to you using your credit card to get 500,000 miles for $12,xxx. The advantage is that you get at least three people first class to Australia or four people (I think) in business class. Considering a first class ticket to Australia is $12,000 -- you are ahead because you have to pay the taxes anyway.
But the other part of me says.... hey pal, if you have to pay IRS $500,000 -- you ain't got to worry about how much a first class ticket class ticket costs.... you know what I'm saying?
I'm a miles hog and proud of it.
Other people have already heard mile trip... I charge all my taxes -- US, California and property on my UA Visa -- got double miles and flew first class to Sydney last June. The seat was 120,000 miles... therefore $60,000 worth of taxes..times whatever... I think I paid around $2,000 in fees. And I'm sitting first class on 747 to Sydney that would have cost $12,000.
I'm behind you regardless what you do... but them miles look pretty good from here.
David