A 28-year-old man died on Tuesday night in Burwood after police allege a stolen Jeep Grand Cherokee, being driven erratically at high speed, crashed into his car.
Police allege there were six teens in the Jeep, with four boys fleeing and two 15-year-old girls arrested at the scene and later charged with theft of a motor vehicle before being bailed.
A 17-year-old boy was arrested on Wednesday night and charged with culpable and dangerous driving causing death, failing to stop and render assistance, motor vehicle theft and unlicensed driving.
He appeared in a children's court on Thursday, where it was revealed his bail from a previous matter was lifted by a Heidelberg magistrate in March.
However, police were unaware and visited him hours after the crash, finding him in bed with a doona pulled up to his chin, the court was told.
Police seized a pair of white shoes and a mobile phone allegedly used to make a call near the scene when they arrested him on Wednesday.
Three teenage boys remain on the run.
Outside court, Police Minister Anthony Carbines described the incident as a worse-nightmare scenario, with "lawlessness" and "recklessness" taking an innocent life.
"The government understands that the community is concerned that those repeat offenders continue to cause crimes, continue to grow their number of victims because they don't fear the consequences, in many cases, that are being handed out to them," he told reporters.
"So we need to ensure courts take responsibility for explaining the decisions they make, for reflecting community's expectations and values."
But deputy Liberal leader David Southwick accused the government of weakening bail laws and said it was "absolutely ridiculous" to blame rising youth crime on the courts.
"How many innocent lives need to be lost before the government does something about the youth crime crisis here in Victoria," he said.
The Allan Labor government introduced long-awaited youth justice legislation to state parliament on June 18.
The bill will lower the age of prosecution for recruiting children to commit crimes from 21 to 18 and establish a two-year trial of electronic monitoring of repeat offenders on bail.
It is yet to pass parliament.
Detective Senior Sergeant Christian Von Tunk says fleeing and leaving a dying man is "cowardly". (Diego Fedele/AAP PHOTOS)
The Jeep in Wednesday's crash was allegedly stolen during an aggravated home burglary in Cranbourne South, before being used in two armed robberies in Ormond and Ripponlea on June 30.
Following the crash on Wednesday, Detective Senior Sergeant Christian Von Tunk said it was "absolutely cowardly" of the occupants to allegedly run off and abandon a dying man.
Latest crime statistics show the number of offenders in the 15 to 17 age cohort in the 12 months to March rose by almost 25 per cent to 15,495.
Police estimate 100 to 200 young offenders are driving the crime wave and have launched operations to tackle youth gangs, aggravated burglaries and stolen vehicles.
Mr Carbines said police had made it clear that it was only a matter of time someone would be killed or injured by a stolen vehicle being driven recklessly.
"It is incumbent on the courts to make sure that repeat serious offenders who are on bail have that bail revoked," he said.
Mr Carbines signalled the government would not reconsider moving to lift the age of criminal responsibility from 10 to 12.
The Children's Court has been contacted for comment.
