Institutional abuse survivors are pleased NSW has become the first state to legislate its participation in a national redress scheme, but say the scheme isn't without its faults.
Attorney-General Mark Speakman described the passage of a bill through parliament this week as a "milestone" and urged other states and territories to follow suit.
The scheme will offer payments of up to $150,000 per person, provide access to counselling services and require the institutions responsible to directly respond to survivors.
Leonie Sheedy, chief executive of survivor advocacy group Care Leavers Australia Network (CLAN), says some care leavers have waited a lifetime to see redress, including the oldest NSW survivor who is now 93.
"It will mean that she doesn't have to go down the civil litigation path," she told AAP.
"She doesn't have time to do that anyway, we just have to hope that she will be alive to receive her redress payment."
The national scheme, which begins on July 1, has attracted criticism for excluding people with serious criminal histories.
However, one of CLAN's biggest concerns is a system of "indexation" which means previous compensation will be indexed for inflation and deducted from redress payments.
"We call it taxing care leavers - the poorest of abuse victims," Ms Sheedy said.
"When people were given paltry payments many years ago, they had no expectation that the government would then tax those payments again and deduct them."
The group also takes issue with the exclusion of people who were physically or psychologically abused, such as those forced to work in farms or laundries.
"Many of those people's bodies are broken down because of the labour they had to do in orphanages and children's homes," Ms Sheedy said.
"I feel quite distressed about the first of July because there's going to be a lot of people who are depressed, upset and angry because they're going to be excluded."