It's part of a $378.6 million redress scheme for Indigenous survivors forcibly taken from the Northern Territory, ACT and Jervis Bay Territory.

Additional $7000 payments will be available to help individuals get trauma support

Each survivor will also be given the chance to detail the consequences of their removal in a confidential session with a senior government official.

If survivors choose to do this, they will receive a face-to-face or written apology.

Thursday's announcement is part of a suite of measures worth more than $1 billion to help reduce social, health and economic disadvantage among Indigenous Australians.

Aboriginal leader Pat Turner welcomes the compensation, but says it can never replace growing up with family.

"Many of our Stolen Generations have never re-met their families and never been able to reconnect. So I hope this will give some relief to the survivors," she told ABC radio.

The redress payments, separate from state-run schemes, are among measures Prime Minister Scott Morrison will use to try to close the gap between Indigenous and non-Indigenous Australians.

"This is a practical plan that builds from the ground up by making good on the harm caused to Stolen Generations survivors to supporting this and future generations of young people with more education opportunities," he said.

Other funding includes $254.4 million for Aboriginal-controlled community health organisations and $160 million in early years support for children.

It builds on an agreement last year between the government and Indigenous organisations involving around 17 health and wellbeing targets.

Labor's alternate plan to close the gap includes enshrining an Indigenous voice to parliament in the constitution as called for by the Uluru Statement from the Heart.

The opposition also wants to double the number of Indigenous rangers to 3800 and increase the proportion of Aboriginal federal public service employees from 3.4 per cent to five per cent by the decade's end.

A progress report released in July showed Australia was expected to miss key targets including on reducing suicide rates, closing the life expectancy gap, and keeping children out of child protection and adults out of jail.

But some were on track, including a target of reducing the rate of youth detention.

Stolen Generations survivors can apply for the one-off federal payment from March 1 next year until February 2026.

Indigenous people who were under the age of 18 when they were taken from the NT and ACT, before the territories became self-governing, as well as Jervis Bay, are eligible.

Families of survivors who die between the scheme's announcement and applications opening next year will be able to lodge a claim on behalf of their loved ones.

The Stolen Generations were the result of decades-long government assimilation policies. Legislation sanctioning these forced removals was repealed in 1969.

Australian Associated Press