Victoria's contentious reverse-onus test for bail will no longer apply to low-level offenders and the "unacceptable risk" provision refined so the risk of minor reoffending cannot be used to refuse bail.
Attorney-General Jaclyn Symes conceded bail is not working as it should but said the Andrews government had no plans to weaken laws for those who pose a serious risk to people's safety.
"Victorians know the difference between violent and non-violent crime - our current bail laws however, don't properly distinguish between the two," she said in a statement on Sunday.
"What is under consideration seeks to strike the right balance, but the next few months will be crucial as we consult with Aboriginal Victorians, victims groups, the legal sector, Victoria Police and others on how to make these changes work."
Bail laws were strengthened after James Gargasoulas drove into a busy Bourke Street Mall in January 2017, killing six people and injuring dozens of others.
He was on bail at the time of the attack.
Previously, the reverse onus test was only used for the most serious offenders but was expanded to cover those caught repeatedly carrying out low-level crimes, such as shoplifting.
Offenders can also be denied bail on the basis they pose an "unacceptable risk" to the safety or welfare of any person, among other things.
The changes have disproportionately impacted Aboriginal Victorians and women.
Coroner Simon McGregor in January found the death of Indigenous woman Veronica Nelson in custody in 2020 was preventable and called for an urgent review of the state's bail act.
In a further change, the government intends to amend the act to update the existing list of factors decision makers must consider when a bail applicant identifies as Aboriginal and introduce Aboriginal child-specific decision-making principles.
Legislation to reform bail, child protection and youth justice laws is expected to be brought before Victorian parliament in the first half of this year.
Other aspects of the bill will be detailed in coming months following further consultation, including with the Aboriginal Justice Caucus and other Indigenous groups.
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