According to the Qantas published information about upgrades, its the status of the travelling passenger that influences the priority on the upgrade waitlist. However, I have anecdotal evidence that in some situations the status of the person whose account provides the points is considered in the process.
Unless someone knows the programming logic used by the Qantas upgrade waitlist system, any suggestions here will be based on speculation and personal experiences.
You can upgrade a family member from your account page using their booking reference and surname.
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