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Knight was sentenced to a non-parole period of 27 years behind bars in 1988 for fatally shooting seven people and injuring another 19 in Clifton Hill in Melbourne 1987.
He was marked never to be released under a Victorian law change in 2014.
Special state legislation, specifically targeting Knight, was introduced to keep him behind bars indefinitely.
Now, after spending 38 years in maximum security cells, the convicted mass murderer has been moved to a country jail with a downgraded security classification.
Knight was housed in Pentridge Prison from 1988 until 1996, in Barwon Prison until 2005 and spent the previous 20 years of his sentence at Port Phillip.
Port Phillip Prison is closing at the end of 2025 as part of reforms to the state’s male prison system, Corrections Victoria confirmed earlier this year.
Once the state’s largest maximum security prison, Knight was among over 1100 inmates who were locked up at Port Phillip.
Knight moved to Loddon Prison in Castlemaine two weeks ago after years of lobbying for a lighter security cell.
Knight had claimed he was being targeted due to the notoriety of his crimes.
It is the first time Knight is serving his sentence in a medium security facility.
Loddon is described as a ”campus-style prison”.
“The landscaped grounds, modern buildings and wide range of programs and activities provide an environment which as closely as possible resembles those available in the general community,” Corrections Victoria writes on its website.
Victorian Premier Jacinta Allan said Knight’s movements were determined by Corrections Victoria.
“It was a number of years ago but the pain is still there,” Allan said.
“He continues to be incarcerated and that incarceration, the decisions of his placement, are made by Corrections Victoria.”
Corrections Victoria said it regularly reviews the security classification of prisoners.
“Security classifications consider several factors, including the risk posed to staff and the community,” a spokesperson said.
“This includes the work of the High Risk Management Advisory Panel.
“The panel includes Australian Federal Police, Victoria Police, Corrections Victoria and a former Supreme Court Judge who make recommendations to the Corrections Commissioner.”
State Opposition Leader Brad Battin said he believed the families of Knight’s victims would be “absolutely devastated” by the prison security downgrade.