The Australian reported the lane was marked with a bicycle symbol on the road surface however it was not a "dedicated" bike lane.....
The Age reports:
Nevertheless, cyclists [in Victoria] have the right to overtake vehicles on the inside, unless the vehicle is in the act of turning left. ...
State bicycle operations co-ordinator Sergeant Arty Lavos said white lines and bike symbols painted on the road were lulling cyclists into a "false sense of security". He said lanes with bicycle symbols painted on them were not necessarily bicycle lanes, pointing to a "classic example" in front of the Victoria Police Centre in Flinders Street. "That's a painted bicycle symbol in that lane there, but it is not a bike lane because it has no signage," Sergeant Lavos said.
important point to reiterate- cyclists can overtake vehicles on the left:
Sergeant Lavos said:
"Was Collins Street a designated bike lane where the cyclist was riding a bike lane? No, it isn't, but the cyclist is quite entitled to be in that left lane. Motorcyclists technically can't, because they are motor vehicles – that's overtaking on the left... bicycles excepted. The only time bicycles can't go up a lefthand side of a motor vehicle is when the vehicle is indicating and in the process of turning," explained Lavos.