As a practical answer to is Lane Splitting legal:
I split everyday for about 20-30 Km of my 60 Km commute (one way) to work.
The only time I ever have had any trouble with the police is:
1: I went 'filtering' into a gap where the traffic had started to flow nicely again - I may have gone into the gap at about 80-90kph (traffic was speeding up from 40-50 to 70-80) and I got a finger wag from a marked police car
2: Similar situation, traffic sped up for a short section, I CBF'd pulling in line with the traffic (as I knew it would slow down in 400m thanks to the onramp coming up) a Bike Cop lifted his lid - politely told me that at above 60 Kph, I should be in line with the traffic (we didn't stop, he told me while we were rolling along) before he waved me to go on.
As others have said - filtering is 'legal' thanks to some very liberal interpretation of our keep left/overtaking laws (basically the Law says you can go round a stopped vehicle or a slow moving vehicle) but unlike other places - there is no explicit rule that says filtering is either legal or illegal. There is a technical Caveat - in order to be an overtake, filtering should be done in the Right hand side of the lane, not the left hand side of the lane. But since most drivers hug the right hand side of the lane, typically I find myself filtering on the left of the right hand lane.
TLR - filter sensibly and you won't have an issue - Filter on the back wheel at 100+ through stationary traffic and you will get pulled.
Physics; Thou art a cruel, heartless Bitch-of-a-Mistress
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