A council of police, judiciary, lawyers, academics and victims of crime will be created to guide Victorian courts on sentencing.
The council will be based on a UK model and will look at sentences for specific crimes, doing public consultation as part of their research.
Attorney-General Martin Pakula said legislation to establish the council would be introduced in 2018.
However, the final number of members and cost has not been set.
The council was suggested in a report by the Sentencing Advisory Council, which will now lead consultation to create the group.