As others have said, VA award availability is traditionally supposed to be quite good. So I wonder if this is a temporary "glitch" rather than a sure sign of things to come.
Transferring to KrisFlyer has its own advantages and disadvantages, but it won't make it any easier for you to fly VA to LAX as the availability will probably be the same for KrisFlyer members and you'll probably need more points overall when you take the 35% penalty into account.
Would you could do, however, is transfer to KrisFlyer if you were able to book MEL-SIN-LAX on Singapore Airlines. Travel time would be a bit longer though.
Travel time is
much longer actually. SQ don't fly SIN-LAX direct - AFAIK you have to go via Tokyo. So instead of MEL-SYD-LAX in about 18 hours, your're looking at MEL-SIN-NRT-LAX, which takes at least 30 hours (and a lot longer in some cases, depending on how the connections match up).
Also, as andye said, taxes are higher, and again not just by a little bit. The taxes on an SQ redemption from MEL-SIN-NRT-LAX are ~$670 one way, compared to just $55 with VA (at least that's all I paid for the most recent award booking I made with them). On the face of it, the points required are similar with both options (94,000 Velocity points vs 85,000 KF miles), but when you factor in the conversion rate (1.35 Velocity points = 1 KF mile), the actual cost of transferring from Velocity to KF and booking with SQ is 114,750 Velocity points.
So to summarise:
- VA: 94,000 Velocity points + $55 and travel time of ~18 hours
- SQ: 114,750 Velocity points + $670 and travel time of 30 hours plus
Unless VA reward availability really has dried up completely, transferring to KF isn't a very attractive option at all
for this particular route.*
I really hope the VA situation is just temporary, as it really was the best thing about Velocity IMO. For example, a while back I booked
four x J awards from LAX-SYD-MEL on the same flight (travelling next month), with no difficulty. I had a choice of dates and there was availability via both BNE and SYD on each day that I looked at.
* the situation is different on other routes. For example, if you want to go to the EU, you can get one way to a number of airports with plenty of availability from MEL via SIN for about 80,000 KF miles, with just as direct a route as VA/EY. Again the taxes are higher (~$500) than with VA (~$100), but in this case, the difference isn't as big, and it's offset by the lower number of points required.
EDIT: corrected original error re number of KF points required. Thanks to CJEMNMAC for pointing out.