Bitcoin is designed as a global currency that already solves many problems that the banks have not been able to. Banks still take days to transfer money even domestically. Bitcoin can clear in 10 minutes world wide!

Treat Bitcoin as what it is - a global currency. Tax it as a digital currency. Invent a new category where no GST applies to the buying and selling of bitcoins. Capital gains and losses would still apply, putting it on equal footing with sovereign currencies.

If GST is levied on the full value of Bitcoin purchases at the exchange level, it will drive Bitcoin adoption out of the Australian economy.

Bitcoin has numerous advantages over using banks including no fees for merchants to accept it, finality of payment and reduced identity theft for the customers.

Further, Australians should have the same rights as the citizens of these other countries to use Bitcoin as a means of exchange without being penalised 10%.

The Goods and Services tax is a form of consumption tax levied on goods and services. Bitcoin is designed to function as money.

By taxing Bitcoin as a good the under-banked will be even more disadvantaged, entrepreneurs will go overseas and competition in the financial industry will diminish.

Ultimately this decision decides how economically free we are. I like to think that Australia is a place where we have freedom from state tyranny.