There are two people in this itinerary and looks like it costs 20,000 points to upgrade a 1607-mile leg. It's booked in O class and normally I wouldn't be able to upgrade at all. The upgrade cost is 16,000 points from -Y to J, or 10,000 points from Y to J.
So my guess is that Qantas has introduced upgrades from deep discount economy (e.g. O and N) to business at a higher tier.