“In my view, that [being a form of money] is sufficient to enable bitcoin to be characterised as property; that is, to use the words of the statute, as ‘other intangible property’, and I so rule.”

Victorian magistrate Michael O’Connell said bitcoin was property, but akin to Australian dollars rather than foreign currency, shares or gold.

The implication is that just like exchanging a $20 note for two $10 notes, no tax is payable.

If upheld on appeal, the interlocutory decision could mean taxpayers who’ve paid capital gains tax on bitcoin transactions are eligible for refunds collectively worth as much as $1 billion, said tax lawyer Adrian Cartland, who acted as co-barrister for the defence.