Vic killer Knight loses smokes levy battle

Hoddle Street mass murderer Julian Knight has lost a legal battle against a levy imposed on cigarettes sold to Victorian prisoners.

Knight, who is a heavy smoker, took action in the Federal Court challenging Corrections Victoria's right to impose a levy on cigarettes sold in prisons.

The levy was introduced in 1993 to fund anti-smoking programs for prisoners.

Justice Debbie Mortimer ruled in favour of Corrections Victoria on Friday, finding the levy was legally instituted.

Knight, 46, murdered seven people and injured 19 others during a shooting rampage in Melbourne in 1987.

He was due to become eligible for parole next month, but the state government has introduced legislation to ensure he remains in jail until he is dead or crippled.