Chloe Hoson was only five years old when her neighbour strangled her to death in Australia, wrapped plastic bags over her head and dumped her near a creek.

Her killer has this week been freed after spending no time in jail.

Timothy Kosowicz has been released from a mental facility, leaving the girl's family furious that 15 years after her death, her killer is out on the streets without supervision.

Now, days after his release, CCTV footage has surfaced showing the moment police raided Kosowicz's Lansvale caravan.

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Detectives also found a sports bag containing blood-soaked sheets and clothing. It is the same bag the killer used to carry Chloe to the creek where he dumped her lifeless body.

CCTV footage shows him leaving in the early hours of the morning, with the five-year-old's body in a bag, headed to the creek.

"She was inside the bag. She was inside the bag and he walked with her to the location where he dumped her body," NSW Police inspector Roger Best said.

That video was what led to his confession.

"To take him to that moment where he was going to look back and look in to see exactly what he'd done ... the thought of watching this video was enough to flip him from lying to confessing," Inspector Best said.

"It was at that moment that he said those words of, 'I think I need a lawyer'."

He was found not guilty due to his schizophrenia.

The police who caught him says those who let him out this week are "making a mistake".

"The consequences of making a mistake in this matter are quite literally deadly."