The Supreme Court of Victoria is bound by decisions

of, for example, the Supreme Court of New South Wales, as long as the facts in

the case before the courts are similar.

The ratio decidendi (i.e., reasons for deciding)

is the part of the judgment that is binding on lower courts, and the obiter

dicta is the part of the judgment that was not strictly necessary in order for

a court to reach a decision.

Decisions of equivalent or higher standing

courts from other jurisdictions have persuasive value, but do not have to be

followed.

Higher courts establish precedents which are

binding on lower courts in the same court hierarchy, if the facts in the cases

are similar.