Child sexual abuse survivors with criminal convictions should not face any restrictions in accessing the national redress scheme, legal and community groups say.
The federal government has amended - but not dropped - its policy that blocked access to redress for sex offenders or anyone jailed for five years or more for crimes such as murder or serious drug and fraud offences.
Applications from institutional child sexual abuse survivors with serious criminal convictions will now be assessed on a case-by-case basis.
A coalition of legal, human rights and community services groups has written an open letter to the federal and state governments urging them to ensure survivors with criminal convictions have access to the scheme.
Jesuit Social Services CEO Julie Edwards said many people who committed crimes were victims themselves and evidence suggested survivors of sexual abuse were five times more likely to be charged with an offence than others.
"Restricting access to the redress scheme for people who have been incarcerated for five or more years may leave victims of child sexual abuse without access to rightful compensation - even though the abuse suffered may be a major factor behind their offending later in life," Ms Edwards said.
Australian Lawyers Alliance spokesman Dr Andrew Morrison SC said people with criminal convictions have already been punished for their crimes.
"You don't punish them for a second time in circumstances particularly where in many cases they've been led into crime by the original abuse," he told AAP.
Dr Morrison said the exclusion could mean as many as 30 per cent of survivors are deprived of access to compensation under the national redress scheme.
He said the only eligibility requirement should relate to having suffered abuse in an institution.
People in jail cannot apply, although the scheme operator has the discretion to accept an application if there are exceptional circumstances, such as the survivor is so ill it is likely they could not make an application when they are released.
The ALA also criticised the exclusion of survivors who are not Australian citizens or permanent residents.
"The real victims are those who are the Commonwealth's responsibility, namely children in immigration detention - whether it be onshore or offshore - who are to be deprived of any access to the redress scheme," Dr Morrison said.