Unfortunately they can... Airlines are pretty much a law unto themselves. Just a couple of weeks ago my Dad and his partner were on their way back from the UK and had a stopover in Dubai. They had their boarding passes and everything (from when they checked in in London). They got to the gate in Dubai and were told that they no longer had seats and would be on a flight the next day! The airline put them up in a crappy hotel for the night and gave them a $300 voucher (like they'll want to fly with them again)!
Anyway, that's not really relevant is it?
Jetstar do have to offer you another flight and 'may' give you the option of a refund (but I don't think that they have to). Do you have travel insurance? If you do, then the travel insurance might cover your costs for switching to the Qantas flight.
dh recently had a jetstar flight cancelled a few hours before the flight, he was the photographer for a wedding the next morning so he HAD to be there on time. Jetstar offered a flight the next day and when we said that wasn't an option, they offered a refund. I quickly booked him a new (more expensive) flight with Qantas and sent him on his way. You wouldn't believe it, the flight missed the Sydney curfew by 1 minute, 1 minute!!! They were coming in to land, then they were back up again, and on their way back to Melbourne, he got home in the early hours of the morning, and rebooked on a stupidly early flight as that was the only way he was going to get there. Crazy. He should have just stayed at the airport!
Sorry, that was a bit long! So, yes it seems that they can change it, but you should be able to get a refund at least, it doesn't help with the inconvenient times though!
Hope you can work it out and you have a fabulous time
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