The government has announced an expansion to the redress scheme for victims of financial misconduct, with consumers and small businesses able to receive up to $30 million in compensation.

Through regulation the government is working with the relevant agencies to ensure the payments, owed by bankrupt financial firms, will start to be made in the coming weeks.

In a statement Treasurer Josh Frydenberg said "the government had gone further than Commissioner Hayne recommended, extending the co-operation requirement to all Australian Financial Complaints Authority members including Australian Credit Licence holders and Registrable Superannuation Entities".