SPG has quietly added a new airline to its list of partners that you can convert your Starpoints to. This was done on September 17, 2013.
Virgin Australia mainly serves the Australasia region, but have few long-haul flights to United States and Abu Dhabi as well.
The conversion rate of Starpoints to Virgin Australia Velocity miles is 1:1. Remember that you will get 5,000 bonus for converting in blocks of 20,000 Starpoints
SPG added Virgin Australia to its partner conversion list, but when I just tried to access the web page from Kuala Lumpur, it was nowhere to be found. This is likely a web caching issue. I do have a screen shot of the web page showing the conversion rate.
SPG and new airline partners usually tend to have a promotion to celebrate the new partnership. We should soon see something from SPG & Virgin Australia.