Victoria will pay $600 million to child sexual abuse survivors under the national redress scheme, although Premier Daniel Andrews accepts it will not be enough for some victims of "evil" crimes.
The state has allocated $600 million over the next decade to fund redress for the thousands of people sexually abused as children in government-run institutions.
Mr Andrews said it was the right thing for Victoria to do as it attempted to make up for the terrible crimes of the past.
"There will be some for whom this is not enough," he told reporters on Friday.
"Ultimately, the pain can never be undone, some of these wounds can never be healed.
"But this is the appropriate step for us to take, as well as provide other support and assistance to those who are vulnerable."
Survivor groups and federal Labor are among those who have criticised the $150,000 cap on redress payments under the national scheme, given the child abuse royal commission recommended a $200,000 maximum.
The major churches, charities and all states and territories have committed to joining the $3.8 billion scheme which will begin on July 1 if laws pass the Senate as expected over the coming week.
"The national redress scheme is all about trying the best we can and, acknowledging that this is a very difficult task to make good, to supply support and justice to those who were the victims of evil acts and cover-ups that were equally evil," Mr Andrews said.
The scheme covers about 5000 people abused in Victorian government institutions.
A state act that became law this week made it possible for Victorian non-government institutions to participate in the scheme, giving another 10,000 survivors access to redress.
Attorney-General Martin Pakula said the state funds will ensure thousands of survivors of child sexual abuse in government institutions are supported through financial assistance, counselling and a direct personal response - such as an apology - from the organisation responsible for their abuse.
"We're making sure that survivors of institutional child sexual abuse receive the recognition, respect and support they deserve," Mr Pakula said.
Recent Victorian government reforms include the creation of new laws to quash a legal loophole preventing survivors from suing some organisations for their abuse as well as the scrapping of civil claim time limits.