A Dja Dja Wurrung leader says the announcement of a redress scheme for the Stolen Generations is a significant move towards healing.
The Victorian government has announced $10 million in funding to establish a redress scheme for members of the Stolen Generations and their families.
A redress scheme was a key issue raised at the first meeting of the First Peoples' Assembly of Victoria, which is establishing a framework for treaty.
Forcibly removing Aboriginal children from their families caused long-lasting trauma, and a 2018 survey found 70 per cent of those who were removed relied on welfare, while more than half had a disability or chronic health condition.
Dja Dja Wurrung Clans Aboriginal Corporation chief executive officer Rodney Carter said members of the Stolen Generation could also struggle with their identity.
"They can't connect, because they're stolen," Mr Carter said.
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He said the government's plan to establish a scheme was important.
"The acknowledgement... is really significant, and contributes to the healing for people," he said.
Payments, counselling support and a memorial or funeral fund are among the options on the table for the scheme.
Funding to help survivors tell their stories and help them make redress applications has also been flagged as a possibility.
Consultations will begin this year and the scheme will begin next year.
"This is about delivering members of the stolen generation the recognition, respect and support they deserve and acknowledging how deeply damaging this policy was for so many," Aboriginal Affairs Minister Gavin Jennings said.