I thought the same - but I doubt it.
I don't think they would refund the fee if you have already booked you flight. Similarly I don't think that the fee refund is linked in any way to the benefits of the card, to be honest their systems are probably not integrated well enough to handle that!
I guess now that the refund has occured I could always try to book a flight and see what they say...
So I sent an email to ANZ asking to get a refund and that is the answer I just got :
"Thank you for your enquiry regarding your ANZ card account.
If you no longer wish to claim your included complimentary flight for the current account year, we are able to process a partial refund of $130 of your Annual Account Fee, reducing it from $170 to $40. The rewards program service fee of $55 for each card holder and any additional cardholder fees will continue to apply as reward points will continue to be earned.
If you agree to this once off Annual Account Fee reduction, all of your complimentary flight benefits and Virgin lounge passes will be forfeited for the current account year. This includes any existing bookings, travel credits and any unbooked entitlements you may have.
If you would like to proceed with a one-off $130 reduction to your Annual Account Fee please confirm your acceptance by responding to this email. This will appear as $130 credit card statement.
If you would like to retain your current travel entitlements you do not need to respond to this email and those entitlements will remain, however please note that due to current travel restrictions flights are extremely limited.
For all enquiries for existing or future travel bookings please call the ANZ Rewards Centre on 1300 367 763 (Mon to Fri 8am to 8pm AEST excl. national public holidays).
Thank you for banking with us. If you have any other queries about your ANZ card account, please feel free to contact us at any time via SecureMail or by phone on 13 22 73. Overseas customers can call reverse charges from a landline phone by contacting us via the international operator on +61 3 9683 7043 at any time. Please make sure you have your ANZ Visa or MasterCard number handy when you contact us.
Kind regards"
So for now, I will keep the card as it is and monitor the situation.