Folbigg gets $2 million compensation for 20 years in prison

Outrage has erupted over the Minns government’s $2 million payout to Kathleen Folbigg, with a Green MP calling the offer “insulting” and “disgraceful” after her 20 years of wrongful imprisonment.

Kathleen Folbigg after being released from jail two years ago. Picture: Adam Yip

Kathleen Folbigg has been awarded a $2 million ex-gratia payment from the Minns government.

The compensation comes more than two years since Ms Folbigg was released from prison, where she spent 20 years for the deaths of her four children before being acquitted in 2023.

The amount is only $300,000 more than the $1.7 million including costs Lindy Chamberlain received back in 1992 for spending three years in prison after she was acquitted of the murder of her daughter.

Ms Folbigg’s best friend Tracey Chapman, who campaigned for her aquittal called the ex-gratia payment “offensively obscenely tiny”.

She said Ms Folbigg was feeling disappointed but her first reaction was that she was “not surprised”.

“She said she was just shocked by the lack of empathy in the system,” Ms Chapman said.

“There needs to be at the very lest an inquiry - this needs to be a catalyst for reform. There needs to be a set formula for this kind of thing.”

MPs have expressed shock at the amount given to Ms Folbigg.

Greens MP Sue Higginson said the offer to Kathleen Folbigg was “disgraceful”. Picture: NewsWire / Gaye Gerard

Greens MP Sue Higginson said the offer was “disgraceful”.

“This is a shocking and insulting offer from Labor Premier Chris Minns, to the woman who was failed in the most incomprehensible way by the state he leads,” she said.

“I’m astounded at the lack of reason, financial accounting, reflection and empathy this offer represents.

“$2 million barely covers what Kathleen could have earned on a full-time salary over 20 years. Kathleen has not only lost 20 years of wages, she has lost her four children, her home and her employability. She has racked up legal costs fighting her wrongful conviction, she has lost her superannuation and she has been the victim of one of the worst injustices in this state’s history - wrongful imprisonment.”

Nationals MP Wes Fang said the figure wasn’t a “genuine attempt” at compensation and backed in Ms Folbigg's solicitor Rhanee Rego’s calls for an inquiry.

Kathleen Folbigg has been awarded $2 million in compensation for being wrongly imprisoned for 20 years. Picture: Adam Yip

Ms Rego called the ex-gratia compensation offer “profoundly unfair and unjust”, saying she deserved more after spending so many years of her life in prison despite being innocent.

“The sum offered is a moral affront – woefully inadequate and ethically indefensible,” she said.

“The system has failed Kathleen Folbigg once again.

“Kathleen lost her four children; she lost 20 of the best years of her life; and she continues to feel the lasting effects of this ongoing trauma. The payment does not reflect the extent of the pain and suffering Kathleen has endured.”

Ms Rego said an inquiry was urgently needed to understand how the NSW government arrived at the $2 million figure.

Kathleen Folbigg in June 2025.

“Kathleen Folbigg’s fight should be over,” she said. “After being failed at her conviction and abused in prison, she is now being treated with contempt by the very system that should be making amends”

Earlier this week, Mr Fang and Ms Higginson moved to have a parliamentary inquiry into why the decision around the ex-gratia payment had taken so long.

“More than ever, we need this inquiry to progress, to examine how this government determined this inadequate figure and why it took two years to provide her an offer, given they probably spend more on their staff lunches in a year, than they’ve ultimately offered her,” he said.

“The state took away Kathleen’s life, her liberty, even her home, for 20 years. Michael Daley had the ability to give her a small amount of dignity back, to try and enjoy her next 20 years. Once again, this Government has failed another woman in the justice system.”

In a statement from Attorney-General Michael Daley released on Thursday afternoon, he said the decision “follows thorough and extensive consideration of the materials and issues raised in Ms Folbigg’s application and provided by her legal representatives”.

“The decision has been communicated to Ms Folbigg via her legal representatives,” the statement said

“At Ms Folbigg’s request, the Attorney-General and Government have agreed to not publicly discuss the details of the decision.

“The Government will not make further comment on this matter.”

Originally published as Folbigg gets $2 million compensation for 20 years in prison