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'Lane-splitting' is riding between cars and is legal in some places (eg Victoria - if the cars are stopped) and not others (eg NSW). Two moving vehicles in the same lane (including bikes) is illegal everywhere as far as I am aware.
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I am sure about 'Lane-splitting' being legal in Victoria.. As i got done for it..  , well acutually pulled over yelled at and held there for 1/2 hour, but no fine.. so it would be interesting to see what the law actually says..
and in Tassie they have made it legal a few years back for bicycles to tandem (two next to each other in a single lane).. and it has caused more then a few issues.. and i think it is stupid and dangerous as they can be moving so much slower then the flow of traffic and annoy people who then over take in dangerous situations.
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