Citizenship requirements for holding a gun licence will be bolstered, however, under new firearms laws to be introduced to Victorian parliament following the release of former police commissioner Ken Lay's final report.
The Victorian government accepted 15 of the 16 recommendations made as part of the probe, including national background checks to ensure firearms users are fit and proper to hold a licence.
"The vast majority of firearm owners, the overwhelming majority, are law-abiding ... and I'm just not necessarily convinced that caps are the way to go," Premier Jacinta Allan told reporters on Monday.
"What we have to really target our focus on and our effort on are those evil actors, the criminals who get their hands on one single gun."
The measures include tougher penalties for firearms trafficking and enhanced police powers to temporarily re-classify guns for licensing purposes.
The reforms would also strengthen firearm prohibition orders to crack down on criminals, a government spokesperson said.
The government rejected a recommendation to introduce a limit of up to four firearms for category A and B licence holders.
Under the new powers, gun licences would be restricted to Australian citizens, New Zealand citizens who are permanent residents and non-citizens who require a firearms licence for occupational purposes.
Maximum penalties will also be bolstered for people who acquire, possess, carry or use a firearm or firearm-related item in contravention of a firearm prohibition order.
"We'll continue to work at a national level with other states and territories on the renegotiation of the national firearms agreement," Ms Allan said.
The state opposition said it would consider the 16 recommendations but did not support restricting the number of firearms law-abiding licence holders could own.
The review received more than 19,500 survey responses and conducted 40 face-to-face consultation sessions with key stakeholders.
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