The Victorian government on Thursday announced it would set aside $138 million for Australia's first forced adoption redress scheme, after flagging the initiative last year.
Mothers subjected to forced adoption before 1990 will soon be able to apply for $30,000 in financial compensation, as well as counselling, psychological support and individual apologies.
"While no amount of financial payment or counselling support can compensate mothers for the loss of their child, this scheme is a way to acknowledge the harm and injustices suffered due to these horrific practices," Attorney-General Jaclyn Symes said in a statement.
The redress scheme was a key recommendation from a 2021 parliamentary inquiry into the widespread practice between 1958 to 1984.
In that time, at least 40,000 adoptions were arranged across the state.
Mothers were restrained when giving birth, immediately separated from newborns against their will and pressured or coerced into signing consent forms.
In 2012, then-Victorian Liberal premier Ted Ballieu formally apologised for the state's past adoption practices.
More than 70 mothers who have already accessed a $700,000 interim hardship fund will still be eligible for redress.
Applying for the scheme will not prevent mothers from initiating civil action, although the government is yet to follow through on its pledge to remove the statute of limitations for historical forced adoption.
Children and fathers are not eligible for the payout but the government is considering offering them support and other suggested reforms from the parliamentary inquiry.
Of the inquiry's 56 recommendations, 33 were supported in full or principle and the 23 others remain under consideration.Â
Victoria's state-funded post-adoption support service welcomed the scheme opening next year but said mothers would be "bitterly disappointed that the payment is so low".
"This just reinforces the long-standing inadequate recognition of these women and that they are not considered a priority," Victorian Adoption Network for Information and Self Help chief executive Charlotte Smith said.
"It also sends a negative message to adopted people who have not been included in the scheme."
Shine Lawyers abuse law senior solicitor Jessica Steele said the $30,000 payment was much lower than what the firm expected.
"We represent dozens of women who were subjected to the barbaric practice of forced adoption, and have spent years lobbying the government for change," she said.
"We're calling on the government to remove the statute of limitations to allow these women to pursue civil action against the institutions who unlawfully removed babies from their mothers' arms.
"We're also calling for institutions to be compelled to nominate a proper defendant and shut the loophole which has protected them from being held to account for far too long."
Applications for the redress scheme will open in February.
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