Robert Richardson, known as "Jack", was found dead in bushland off King Parrot Creek Rd near Strath Creek in central Victoria on March 31, 1984, after he was shot in what police believe was an execution-style killing.
The 49-year-old was last seen with two unknown men at St Kilda between 1.20am and 2am on March 4, the day before he was due to go to trial at Melbourne County Court with two co-accused charged with conspiring to traffic heroin.
Victoria Police Detective Inspector Dean Thomas said Richardson's death the day before the trial was due to start was no coincidence.
His killing was also two years to the day after police first made arrests over the heroin trafficking investigation.
Police said the investigation involved a high-level Melbourne organised crime syndicate connected to the notorious Painters and Dockers Union.
It was also linked to an attempted hit on a NSW Police undercover operative, who was a prosecution witness.
"Jack's death had all the hallmarks of an underworld execution, and the evidence suggests he probably had no warning he was going to be killed and trusted the person who did it," Det Insp Thomas said.
"Ultimately, his fatal mistake may have been trusting the wrong person."
Police believe several people helped arrange Richardson's murder, including his friends.
A 1985 inquest into his death officially found he was killed.
Since their original investigation, detectives have received more information about those potentially responsible, and fresh DNA has been identified after a forensic re-examination of crime scene evidence.
However, they have insufficient evidence to charge anyone.
Police are searching for anyone who helped plan Richardson's murder, likely including people formerly associated with the Painters and Dockers Union.
They are also hunting for who fatally shot Richardson.
The 49-year-old was on bail and living with his girlfriend at St Kilda before his death.
He also had a young daughter, who grew up never knowing who killed her father and why, Det Insp Thomas said.
"As we always say, circumstances and relationships will change, and potentially someone who may not have been able to come forward and speak to police previously may now feel they are in a position to do so," he said.
"Given Jack's significant criminal history and associations, we also believe there is a strong likelihood that people with information were afraid to come forward at the time of his death because they feared significant retribution.
"We're hoping that some of those people may now be able to speak to us without those fears or concerns."
The $1m reward will be paid at the Chief Commissioner of Police's discretion for information leading to the apprehension and conviction of the person or people behind Richardson's murder.
The Director of Public Prosecutions will consider granting indemnity to anyone who leads them to the perpetrators.
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