Australia will pay millions in reparations to some Indigenous survivors forcibly taken from their families from as early as over a century ago.
Dubbed the 'Stolen Generation', more than 100,000 Aboriginal children were taken over a period spanning decades.
That led to a historic apology from the government, thirteen years ago.
Current Prime Minister Scott Morrison announced the fund's establishment on Thursday.
"What happened is a shameful chapter in our national story. We have already confronted it, with a national apology, but our deeds must continue to match our words."
"This is a long called for step, recognising the bond between healing, dignity and the health and well-being of members of the Stolen Generations, their families and their communities."
But the move also comes months after hundreds of survivors filed a class action lawsuit in the nation's top court seeking compensation.
Since then-Prime Minister Kevin Rudd's apology in 2008, a socio-economic gap has persisted between Australia's Indigenous and non-Indigenous citizens.
According to government data, Indigenous Australians are likely to die younger compared to their non-Indigenous counterparts.
They are also reportedly over-represented in the nation's prisons.
Indigenous groups on Thursday welcomed the government's payments but cautioned more work needs to be done.