The people tortured while children in the Lake Alice psychiatric hospital will receive a $150,000 redress payment or can request an independent arbiter make an individual assessment.
The minister responsible Erica Stanford made the announcement on Wednesday afternoon, revealing the government had set aside up to $22.68 million for the redress scheme.
Survivors would have until the end of April to choose the individual payment process or the end of September for the expedited $150,000 pathway.
Ex-gratia payments would be made by the end of 2025, Stanford said. The process would be administered through the Crown Response Office.
Survivors would also receive a new written apology from the Crown explicitly acknowledging torture, and be helped to access desired support services.
The announcement follows the Royal Commission of Inquiry into Abuse in Care, which found many of the 362 children who went through the Lake Alice unit between 1972 and 1978 were tortured. Despite not being mentally ill, they were subjected to unmodified electroconvulsive therapy (ECT) or paraldehyde injections.
"These weren't administered for any medical reason, instead were used for punishment and emotional control through terror," Stanford said.
"While it is not possible to right or compensate for the wrongs of the past, Cabinet has agreed to recognition to those remaining survivors for the torture they suffered in the care of the State. It also serves as an expression of our regret as to the many ways in which they were failed."
Stanford said the process would give survivors a choice and provide flexibility, given the different experiences of torture.
"For some certainty and pace are a priority, for others an individualised process is more important," she said.
"Independent legal advisors will be available to assist survivors in the decision about which pathway to opt for and any other legal advice required to inform their decision."
The arbiter and their terms of reference will be considered by Cabinet early next year. Stanford said they would be expected to consult with survivors' lawyers when determining individual redress payments.
The Lake Alice redress scheme is separate from Cabinet decisions, expected next year, about the wider redress system for those abused in state care.
"I would like to thank all of the people who have fought for decades for the truth of what happened at the Lake Alice Unit to be acknowledged and recognised," Stanford said.
"Survivors, their families, supporters, and advocates, and the commissioners and staff of the Royal Commission of Inquiry have all played a critical role in fighting for justice".
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