The Baird government will offer financial compensation to survivors of the Stolen Generations under a multimillion-dollar policy acknowledging the harm inflicted on Aboriginal communities by the forcible removal of children.

Almost 20 years after a landmark national report recommended financial reparations be made to Aboriginal people affected by successive state governments' forcible removal policies, NSW will set up a scheme to streamline compensation claims.

Aboriginal Affairs Minister Leslie Williams will announce a $73.8 million package on Friday to provide redress to members of the Stolen Generations.