The probe released on Monday revealed Victorians are forced to wait up to a year to access their own medical records or other personal information from what's been described as an "impenetrable" 40-year old system.
"Victoria's first-generation FOI legislation cannot be repaired, or even renovated ... the legislation needs to be rebuilt from the ground up," the report stated.
Many government agencies take a "defensive approach" and purposely release as little information as possible, Integrity and Oversight Committee Chair Tim Read said.
"Victoria's 40-year-old Freedom of Information (FOI) regime is struggling to meet the needs of our modern democracy," he wrote in the report.
More than two-thirds of the 48,000 requests for information each year relate to individuals wanting information about themselves.
Dr Read said delays, complexity, high fees, public records in a poor state and an unhelpful culture contributed to the current system's reputation for being impenetrable.
"At least one witness used the term 'Freedom from Information' to describe Victoria's regime," he added.
The parliamentary committee made 101 recommendations including replacing existing legislation with an entirely new 'Right to Information' law, widening the scope from 'documents' to all information in the digital age and a presumption that requested details will be released.
It also called to abolish fees related to requests for personal information and limiting other charges.
Cabinet documents proved to be a major source of debate, with the committee deciding to keep them largely exempt for reasons including confidentiality.
Experts repeatedly called for a new culture of transparency in the public sector and Dr Read stressed political leaders and senior department figures will be instrumental to ensure this actually happens.
The inquiry received 69 submissions including from a body that deals with FOI requests, which was among many calling for a complete overhaul.
In 2022/23 it cost government agencies more than $21.3 million to administer the FOI Act but it collected just over $2 million in fees and access charges.
Premier Jacinta Allan said the government had substantially strengthened FOI requirements in recent years and would consider the report's recommendations.
"This report has just been tabled, the government will consider it and provide its response in the usual way," she said.
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