The travel directives at the three universities I worked at never said, it's always just "points". TBH it's very rarely enforced (in ~10yrs I've never been asked) so I'd be surprised if they are used for anything other than upgrades (J is not allowable on university flights, but you *are* allowed to use your points to upgrade an existing flight on university business). I think you could make an argument pretty easily for base points if pressed though - and they'd likely work it out any 'balance owing' using the airline's online calculators instead of what's in your personal account. This would be based on other processes they use for reimbursement, e.g. you don't get reimbursed actual price paid overseas that appears on your credit card statement, but what the online exchange rates say is the AUD equivalent. They're sticklers for auditing here so they'd want a process the auditors could replicate and verify.
I've used them once or twice to attend conferences, though we do often take holidays coinciding with international work travel. I also often touch base with local academics when on personal trips too. When you work in the academic the whole work time-personal time thing blurs anyway, so I'm sure the university feels they're getting value.