Hoddle Street killer Julian Knight's hopes of parole in two years have been dashed after the Supreme Court refused his bid to change his prisoner classification.

Knight is serving a minimum 27 years in jail for shooting seven people and injuring 19 others in the Melbourne suburb of Clifton Hill in 1987.

He remains in maximum security and is deemed a high-risk prisoner.

He took legal action in the Supreme Court arguing he was being denied a prison plan that would see him downgraded to medium security before he becomes eligible for parole in two years.

Today, Knight lost his bid to have his prisoner status reviewed, but he argued against paying his legal costs.

"I am in custody," he told Justice Katherine Williams from the dock.

"Do they intend to garnishee my prison wage?

"What is the point? Where do they hope to recoup costs from? I am still in custody for a minimum of another two years."

He argued the defendant, the Corrections Commissioner, would have his costs paid for out of the public purse regardless of the outcome.

"If they lose, it doesn't cost them anything as it's taxpayers' money," he told the court.

He said his application for a review of his prisoner classification was important.

"This isn't me making a frivolous complaint about getting ice-cream."

When asked could he address the matter of costs in seven days' time, Knight said he could not as he was caught up in another legal case.

Knight is back in court today in a legal challenge against the prison tobacco levy in his bid for cheaper cigarettes in prison.

Legal costs

Knight was declared a vexatious litigant in 2004 and requires the court approval to go to trial.

Premier Ted Baillieu says the Government is looking at tightening up the law to prevent him from going to court so often.

"Rest assured I and the Government are not going to give Julian Knight any comforts," he said.

Victims are also upset saying his constant litigation is wasting taxpayer's money.

Daryl Jones, a retired police officer, was nearly killed when Knight shot at the police helicopter he was in.

"He has proven in that time he is prepared to waste court's time, police time, the Government's time and everything and yet they are still prepared to allow him to have that funding," he said.

"You do the wrong thing, you're there to serve time, not be fully supported by our funds or taxes."