For her family and friends, the pain of the 2008 murder continues as they struggle with news McDougall's prisoner classification has been downgraded inside Canberra's Alexander Maconochie jail.

Julie Tattersall was drinking with McDougall and Struan Bolas at a home in Downer, when he launched a brutal and frenzied attack.

He killed both with a meat cleaver, before trying to destroy the evidence by stuffing paper into a toaster to set the house on fire.

The bodies were left unrecognisable.

Ms Tattersall's sister Belinda Siataga was not allowed to see her sister's remains, and said goodbye to a white sheet stretched from head to toe.

"You never recover from losing a loved one to such a violent, horrific death like Julie's," she said.

"It was like she vanished, was never seen or heard from again."

In 2011, a judge handed McDougall two life sentences, finding he "gave in to a frenzied blood lust" and killed two people in the most appalling way.

Just weeks before the double-murder, McDougall had finished serving time in Queensland for a drug-fuelled knife attack on a friend.

There is no non-parole period attached to a life sentence under ACT law, but McDougall can apply for release on licence after serving 10 years.

The decision to change his security classification just three years after the sentence later has horrified Ms Tattersall's family and friends.

His classification was downgraded to "medium" in August 2014, and a letter sent to the family states his behaviour and compliance has been "satisfactory".

Mrs Siataga said the decision was out of step with community expectations and fears that McDougall's classification could be reduced again.

"This is a person who hacked my sister to death with a meat cleaver then burnt her body to destroy the evidence," she said.

One of Ms Tattersall's closest friends, Jane Williams, was also shocked. She said it appeared the jail's aim of being human rights-compliant meant "bending over backward" for humane treatment.

"But what about my human rights? Julie has been taken from me in the worst possible way," Ms Williams said.

"When I tried to tell her to cut McDougall out of her life, especially when Julie told me about his prison sentence in Queensland, Julie said to me 'he would never hurt me, I trust him with my life'."

"Those words are my life sentence. I don't get to feel less hurt and pain. I don't get a break."

Corrective Services said he had not undergone therapeutic rehabilitation and previous court proceedings revealed he used heroin for the first time in jail. McDougall has also taught music to fellow inmates.

ACT Justice Minister Shane Rattenbury said he was aware of the concerns.

"The classification system used in ACT Corrective Services facilities is not about managing privileges nor is it used to further punish detainees beyond the punishment they are receiving in being locked up in prison," he said.

"Classification is a prison management tool which is used to manage the safe and secure detention of a detainee and their interactions with other detainees, with staff, with visitors and with consideration for public safety."

Changes would not result in more access for prisoner visits, programs or education.

"I am aware of the registered victim's situation and sympathetic with the traumatic experience she has had and I will be responding to her in the near future," Mr Rattenbury said.