legal tender, as in you can settle debts with it, like you would with AUD.

Although this is the definition of legal tender, I would somewhat doubt that this would happen because of the fact that so many people (a smaller percentage every day) do not know what bitcoin is and a larger percentage (most people) do not know how to properly secure their bitcoin.

It is. Bitcoin and crypto in general is gaining more attention that your average trader would know. A lot going on unnoticed.

I reckon its to do with tax.  ATO has come out with some guidelines already.  If its more legit, then the gov can get their cut.

As much as I feel this is a great thing for bitcoin I can't help but feel that the Australian Government may be doing this to try and make it so they can begin taxing it to make money off it. I really hope I am wrong though.

Bitcoin: tax me if you can
Australia: no bitcoin without tax

When was bitcoin illegal?

Anyways its good Bitcoin will be getting legal rights so people can sue someone in case of theft.

That would be great. Governments shouldn't impose any currency, every citizen should be free to use any currency as he likes.

Sounds like it might be heading in the right direction, one day....
If I had the option of paying for a train ticket with $ or BTC I would choose $$... I get it though.. BTC could be massive (for everyone else heh) if it goes ahead at some point... Things people only ever dreamed might come true.  

The next <3 years could be a wild ride.

*edit* Thinking about it.... Australia will do something to screw it up.. or make it retarded...