Twelve months after the firebombing of the Adass Israel Synagogue and a series of intimidating, antisemitic street protests, Labor has walked away from its commitment to ensure extremists have "nowhere to hide."
Under the flagged changes, protesters will still be able to conceal their identity. Police will only be able to direct a person to remove a mask if they reasonably suspect a criminal offence, and broad exemptions will remain for various claimed reasons.
Shadow Minister for Police David Southwick said this latest backdown shows the Allan Labor Government is in crisis and chaos.
"This proves the Allan Government is more interested in managing internal Labor politics and legal fears than keeping Victorians safe," Mr Southwick said.
"This is another broken promise from Jacinta Allan. Twelve months ago, she said extremists would have nowhere to hide. Now her so-called mask ban has more holes than Swiss cheese. It proves again this government is all talk and no action when it comes to keeping our streets safe.
"It's time for a fresh start - a Liberals and Nationals Government will ban face masks at violent protests and restore move-on powers and protest permits so police can actually keep the peace.
"People deserve to feel safe on our streets. If you are marching in a balaclava screaming hateful abuse, you should be unmasked and held to account, not protected by loopholes."
Mr Southwick said the Liberals and Nationals would examine the full bill when it is introduced but warned that anything less than a strong, workable mask ban and the restoration of effective police powers would be a betrayal of the commitments made after violent, hateful attacks.