Yes not Australian, only 49% owned by Qantas. How many things are 100% from a certain country. Holden or Ford? Vegemite? Tim Tams?
If this allows Qantas to make a better profit for it's Australian shareholders, improve destinations for current QFFers and can feed decent traffic into Qantas' domestic network (staffed by Australians)... then what's the problem? It's taking these measures to arrest the declining share of the market of international travellers. Good on them. If they don't do anything, then they're eventually stuffed (internationally).
Foreign owned airlines operating in foreign countries start to run into traffic rights issues, so not surprising the new entity will only be 49% owned, just like Jetstar Asia.