Aboriginal people who were stolen from their families in South Australia will be compensated by the state government.

An $11 million fund will provide payments to members of the Stolen Generations, including $6 million to go to individuals and their families and $5 million for community payments to cover such things as memorials and counselling and support services.

It will allow for individual payments of up to $50,000 and remove the need for members of the Stolen Generations to take legal action, Aboriginal Affairs Minister Kyam Maher says.

The scheme will make ex-gratia payments for members of the state's Aboriginal communities removed from their families, and whose usual place of residence was in South Australia at the time.

Payments will be recommended by an independent assessor who will determine if an individual is eligible and how much they should receive.

"As part of the process, the assessor will be able to hear the personal stories of applicants and speak with family members and people connected with the removal," Mr said.

South Australian Opposition Leader Steven Marshall said the fund was welcome but came after the government refused to support Liberal legislation last year to establish a compensation scheme.

"It would have been better if the government worked in a bipartisan manner on this issue from the beginning, but action is better late than never," Mr Marshall said.