The West Australian State Government has announced payments of $450,000 will be made to the two victims severely burnt during the Kimberley ultramarathon.

Turia Pitt and Kate Sanderson suffered life threatening burns after becoming trapped by a bushfire on the remote racecourse last September.

A parliamentary inquiry into the disaster criticised the Hong Kong-based company behind the event, RacingThePlanet, along with government sponsor Tourism WA.

Tourism Minister Kim Hames told State Parliament the payments were recognition of the trauma the victims went through.

"No-one can truly appreciate the pain, suffering, and disfigurement that Ms Pitt and Ms Sanderson have endured, and will continue to experience for the remainder of their lives," he said.

Ms Sanderson suffered burns and part of one foot was destroyed.

She told the inquiry she could remember huddling with a group of competitors in a gorge as the fire roared towards them, and then the screams as they were trapped by flames.

Ms Sanderson's brother Ian says while his sister is grateful, her medical bills could total ten times the amount.

"It is potentially a start but for the longer term, nowhere close," he said.

Ms Pitt, who was a mining engineer working in Kununurra, suffered burns to more than 60 per cent of her body, and has been unable to work since the accident.

She has spent over $3 million dollars having her face, hands and body reconstructed.

Her lawyer Greg Walsh also says she is grateful for the payment.

"Turia is very appreciative of the Western Australian Government agreeing to pay that sum of money as a payment," he said.

"She is a wonderful young woman who suffered catastrophic injuries and any amount of money is never going to be able to effectively put her in the position she was before this tragedy."

Mr Walsh says he is in contact with the event organiser lawyers for compensation.

"If we can't resolve the matter by negotiation then of course there's going to be litigation, there's no doubt about that," he said.

"But at this time I'm hopeful we can now sit down and work forward in this way."

Payment offer

Dr Hames says the State Solicitor's Office recommended against making an ex-gratia payment.

"The Government's decision to make an 'act of grace' payment, instead of an ex-gratia payment, is not to be understood to be an acceptance of any legal, causal or moral responsibility to compensate the athletes who participated in the event," he said.

"And, in particular, that there is any responsibility arising from the commercial relationship Tourism WA entered into with the event organiser, RacingThePlanet."

The Minister has ruled out offering compensation to any of the other victims.

"While the Government is sympathetic to their injuries, it is of the view that their circumstances are not so extraordinary as to warrant an 'act of grace' payment," he said.