This is saying that only paid travel - not free travel - will accrue points. Nothing to do with the booking or payment timelines. This would, for the avoidance of doubt, indicate that if you were on a ‘free’ flight, you won’t get points or SCs.There are some interesting clauses on the QFF T&Cs I'm surprised no-one has mentioned:
9.3.1 Subject to the exclusions in clauses 9.3.2 and 9.4, Qantas Points for air travel may be earned only for paid travel or Points Plus Pay - Flights (excluding for the avoidance of doubt any Classic Flight Rewards) on regular scheduled flights where the Qantas flight number or the flight number of the applicable oneworld Member Airline or Airline Partner is shown on the Itinerary ('Eligible Flight').
This implies that it's not until the eligible flight is paid for does it become eligible.
Under the Conditions of Carriage it states:
4. Reservations4.1 Making a Reservation
A reservation for a flight is made when recorded as accepted and confirmed by us or an Authorised Agent. We or our Authorised Agent will provide you with written confirmation of your reservation.
We do not accept any responsibility for any loss you may incur if you make arrangements for travel on Qantas through anyone other than Qantas or its Authorised Agent.
Unless the OP received written confirmation from Qantas's Agent (ie his/her TA) then the Reservation is not valid or accepted by Qantas
Given that - although the term appears commonly throughout the T&Cs - there is no definition that I can find for "booking" then this is as good as it gets from Qantas.
The caveat here is that I'm no lawyer. However, given the information Qantas publish, this "man on the number 4 omnibus" would certainly side with the OP. I can too see Qantas's point however it does not seem to sit with their own published conditions unless the offer T&Cs says differently.
Reservation = booking, So it is relevant that the booking date is the date the PNR is created. In the OP’s case this was May 7.
I think the vast majority of the general public accept ‘booking’ is when you make the reservation, and is not attached to payment. Plenty of folk say they have ‘booked’ their hotel, even though they don’t pay until arrival. Same with flights.