The government of the Australian state of Victoria has set aside $84m (£45m) to completely overhaul the way it tracks sex offenders who leave prison. The move follows a review commissioned in the wake of the brutal murder of 17-year-old Masa Vukotic, who was stabbed 49 times in a Melbourne park by a man who was meant to be being watched by the authorities.

Sean Price was sentenced to life in prison last month for the girl's murder. It emerged after the trial that he then raped another victim two days later despite being on bail and that he was already subject to a 10-year serious sex offender supervision order.

The Victorian government has now accepted 35 recommendations put forward by the review, conducted by retired Supreme Court justice David Harper.

Victorian deputy premier James Merlinoa says the state will now adopt tough new measures which include $54m (£29m) for a secure new 20-bed facility to house sex offenders whom authorities consider present especially high risks of reoffending. Also, $18m (£9.6m) will be spent on expanding both supervision and support for offenders with mental illnesses or cognitive impairment.

"We made a promise to Masa's family that we would implement these changes," said Merlino. "It is unacceptable that we had someone as dangerous as Price out in the community and free to roam. If you are a danger to the community you will not be in the community."

Vukotic's murderer was a known violent sex offender, who had been released on parole six months previously, and was subject to a supervision order under the Serious Sex Offenders (Detention and Supervision) Act 2009. He surrendered himself to his corrections officer two days after the murder, after committing another sexual assault, a robbery and an attempted theft.