Why am I required to have an Australian Credit Card to create a new acct?

I am now living in Australia and would like to create a New Account (besides my US one) to use here.
I have a physical address here and an i-tunes gift card that I just purchased from the news agent.
I can't get past the credit card info (it must know they are US cards) on the new account info page.
Why do I even need to provide this info if I am redeeming a gift card? or am I doing something wrong?
I do want to keep my us account as well. (or is this just too much to ask from i-tunes?)
Any help would be appreciated.

Thanks,
I would be more than ok with this option (AN account financed soley by giftcards), but I absolutely can't create a new account in the Australian store without a credit card (seems silly since I have the gift card).
I select redeem a gift card, I put in the gift card's PIN, am taken to new account info, put in new id, password info, and am taken to the payment info/address page. There are only 3 payment options MC,VISA,AMEX. I put in my Aussie address but can't proceed past this page because my CC is recognized as a US one. I can't leave the card info unselected either. It is required info.
Am I doing something wrong? Perhaps I need to buy a prepaid VISA just to use for this purpose. Does anyone else know of a way around this? I am only living here for a few years so I am not getting new credit cards here.
TIA, Amy

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