Labor has reduced Victoria's prison capacity by 1,376 beds, nearly one-fifth of the state's total capacity, since 2023, with Dhurringile Prison (214 beds) and Malmsbury Youth Justice Centre (75 beds) closed and the closure of Port Phillip Prison (1,087 beds) imminent.
Knight killed seven people and injured 19 with a military grade semi-automatic rifle in Hoddle Street, Clifton Hill, in 1987. He pleaded guilty and was sentenced to life in prison.
His new home at Castlemaine's Loddon Prison is described by Corrections Victoria a "campus-style prison" with "an environment which as closely as possible resembles those available in the general community".
Victorian Opposition Leader Brad Battin said: "Labor has shut down more than 1,300 prison beds and now they're downgrading a mass murderer to make space. It's an absolute disgrace.
"Julian Knight should never leave maximum security. Every Victorian would expect someone responsible for one of the worst massacres in our history to remain behind the highest possible security walls for life.
"The Premier must explain why the worst of the worst are being given softer treatment instead of keeping our community safe."
Shadow Minister for Corrections David Southwick said: "The Government has been warned not to close Port Phillip Prison in the middle of a crime crisis, which is forcing police to house remand prisoners in regional cells and leading to violent offenders being reclassified to lower security.
"While police cells are overflowing and violent criminals are being downgraded, Labor is closing prisons and pretending there isn't a crisis.
"Labor has the wrong priorities and because of their economic waste, Victorians are paying $1.2 million in interest on Government debt every single hour instead of investing in keeping the community safe
