The Western Australian government on Tuesday announced the Stolen Generations Redress Scheme, meaning people who were removed from their families in the state before 1972 will be eligible for individual payments of $85,000.
The announcement was welcomed by survivors and the organisations that represent them.
"By acknowledging such a brutal history, and evil policies that ripped the hearts out of children and families, this day will go down in history as a powerful moment of truth-telling," survivor and co-chair of Bringing Them Home WA Tony Hansen said.
Aunty Jenny Day of Sister Kate's Home Kids Aboriginal Corporation said the announcement is "an acknowledgement that we exist"."It's an acknowledgement about the history of poor legislation," the corporation's interim chief executive said.
"The government is finally accepting that it was bad and that it happened. To deny a child to live with family has effects that are intergenerational."
The announcement follows National Sorry Day on Monday, which marked the anniversary of the tabling of the Bringing Them Home report to federal parliament in 1997.
Redress for survivors was one of more than 50 recommendations in that landmark report.
Healing Foundation chief executive Shannan Dodson said the redress is welcome, but for many survivors, the scheme is not just about the money.
"No amount of money will ever make up for the trauma that's been inflicted on these survivors," she told AAP.
"But redress really is that validation of their experience and is some compensation for the pain that they've suffered."
Indigenous children were forcibly removed from their families and communities under accepted government policies during a period spanning from the 1910s to the 1970s.
"The WA Stolen Generations Redress Scheme is a major step in the pursuit of reconciliation and healing," Premier Roger Cook said.
The state government said it would work with Aboriginal organisations to support communications, the scheme roll-out and planning for additional measures to assist healing for survivors.
With the announcement of WA's redress scheme, Queensland remains the only jurisdiction that does not offer reparations to survivors.
"We hope this does shine a light on the fact that Queensland is the only state left and I hope they start to reflect on what action they may need to take in this area," Ms Dodson said.
WA's scheme is expected to open for registration in late 2025.