He appeared before the Parole Board for the first time last week.
He is currently in Te Ao Marama, the Māori Focus Unit, and the Parole Board noted since his transfer there his conduct and compliance had been good.
However, in April a psychologist had assessed him as falling into a group that pose a "very high risk of violent or general reoffending".
He is awaiting a placement on an intensive rehabilitation programme scheduled to begin early next year.
At his sentencing - even though he confessed to murder - he was adamant that he did not kill Aim.
He said he pleaded guilty to the charge because he was there but another person - a "gang prospect" named "Brian" - was "mainly responsible".
This issue was raised directly with him at his Parole Board hearing and he was clear that was not the case.
"He took full responsibility for killing Ms Aim," panel convenor Neville Trendle said in the board's decision.
"He told us that he was very sorry for his actions.
"He said that he had lain awake at night thinking what he could tell the Board today but concluded the only way he could express himself was through his actions."
The Board was of the view Broughton should commence the Special Treatment Unit Rehabilitation Programme believed to be scheduled for February.
"After an earlier unsuccessful start Mr Broughton has renewed his commitment to making a success of his participation on this occasion," Trendle said.
"Parole is declined. There is much work for Mr Broughton to complete."
Schofield spoke to the Herald last week ahead of the killer's parole hearing.
"I believe whatever happens will happen - but I just wanted people to be aware and updated that he could potentially be out soon," she told the Herald.
"I have no fears [about his release] as I feel like it has been such a long time that has passed.
"I am hoping he has or is turning his life around and won't fall back into bad habits - that is my only worry."
While Schofield, who was 17 when she was attacked, wanted people to remember Broughton and what he did, she also wanted him to make something of the rest of his life.
"I'm just hoping that what he has learned in the time whilst being in prison has helped to change his mindset and hope he is taking it all on board to help change his life around for the better," she said.
"He will still be young when he is released so he will still have a lot of opportunities ahead of him which I hope he takes on board and doesn't go down the wrong path and hurt or ruin anyone else's life.
"That is my only worry - I don't want anyone else to get hurt.
"That's out of my control so, in the meantime I just hope he has changed for the good."
Schofield said she still felt enormous sympathy and sadness for Aim's loved ones.
"My thoughts still sit deeply with Karen and her family and friends," she said.
"I have managed to move on and carry on with life as we do but unfortunately Karen didn't get that chance because of his actions - so I hope he takes responsibility now for this.
"I also hope when and if he is released into the 'real' life that he has good support and won't fall into bad habits or surround himself with the wrong crowd."
Aim's family did not want to speak about the hearing.
In early 2018 - around the 10th anniversary of the murder - Aim's father Brian told media he would campaign against any bid for freedom by Broughton.
Tragically, he died suddenly in November that year.
But when spoken to ahead of the anniversary he said he would write to the Parole Board ahead of any hearing and said the offender should not be released "for the safety of the public in New Zealand".
Brian Aim speaks to media about his daughter after her murderer was sentenced. Photo / Alan Gibson
At the time Aim said he still had no idea why his daughter was targeted and on that basis, believed that Broughton should be kept behind bars.
"I wonder if he is safe to put back into society again, as he committed these two violent acts," he told Scottish media.
"I feel it is my duty to write a letter to the Parole Board to try to keep him behind bars, for the safety of the public in New Zealand.
"If it had just been Karen you could say it was just a random act. But he had tried it 10 days before. I question whether he is safe to put out in society again."
A floral tribute at the spot in Taupō where Scottish backpacker Karen Aim was killed. Photo / NZME
He also told the Herald that he wanted Broughton to take responsibility for his crime and tell them honestly how his daughter died.
"We wanted to find out from the one person who knew what happened that night as to whether Karen was chased and terrified before she was murdered or was she murdered from behind and never knew the incident ever happened?" he said.
