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I was doing a VCE Legal Studies SAC revision when I became stuck with the same question. I looked it up in my text book and Google, and neither gave me a clear explanation so I went and asked my dad. He thinks that 'propensity' means chance. ie, evidence based on likelihood, similar to circumstancial evidence which is a set of circumstances or facts, rather than direct evidence, indicating that a certain event has happened. Prior convictions are normally inadmissible in Victorian Courts, however, it is supposedly admissible (allowed) if propensity evidence is allowed by the judge (who must adheare to the strict rules of evidence and procedure).

This sourced information may be useful too: A particular species of 'propensity evidence', which is hereafter referred to as 'similar fact evidence', is any evidence of specific conduct, normally discreditable in nature, which is of the same general character or shares some common feature with the conduct which is the subject of the proceeding in question - and which is tendered as circumstantial evidence of one or more of the constituent elements of that conduct. If, for example, an accused has been convicted of one or more offences having a highly unique modus operandi, there are circumstances in which the convictions are admissible as circumstantial evidence of the accused's guilt of another offence committed with the same or very similar modus operandi.

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